New Aged Care funding starts to unravel – Privates and Not For Profits not so happy – all construction stops?

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Watch this space. We hear the big private operators are halting all new construction and heading to Canberra with a tough message. The Not For Profits are not far behind. As reported in our April 20 newsletter, the Government’s new aged care funding is not good. The reality is that there is virtually no new money for the traditional bricks and mortar aged care facility. On top of this the uncertainty of the bond as a source of funding has the banks stopping all construction finance plus calling in operators to explain how they are going to manage their existing funding. And the Not For Profits are now realising they will not have a reliable supply of income from providing Extra Services due to the consumer having choice if they want those services (even if they need them) and the impact of user pays; many won’t have the cash to pay for the services. This loss of additional income means the Not For Profits will not be able to subsidise their work with the disadvantaged. Expect heavy action in Canberra soon.