The lack of new aged care beds being built is a ‘national challenge’ that requires responsibility and leadership from the sector to rectify, rather than simply pointing to the government to act, was a cornerstone of presentations made at the LEADERS SUMMIT over the past two days.
Christopher Baynes, the CEO of the DCM Group and publisher of this newsletter, put forward that the government and the Department of Health deserves support and guidance by executives whose advice they trust.
He nominated five executives that had earned this trust, led by Grant Corderoy, Senior Partner StewartBrown, who dedicates 2.5 days per week doing pro bono work for the sector.
Grant has built significant trust with the Australian Government over many years, along with Tom Symondson, the CEO of ACCPA, Tracey Burton, the CEO of Uniting NSW.ACT, Ian Yates, Acting Inspector-General of Aged Care, and Rachel Argamon OAM, CEO of Opal Healthcare.
We must "win the trust of the Department" and help them make "good policy", Chris said.
With a shortage of hospital beds and not enough aged care beds being built, Australia could be headed for a "trainwreck" like New Zealand in terms of aged care accommodation.
In the past three years just 3,000 net new beds have been delivered into the market. This compares to 8,800 beds per year the Minister and the Department forecast are required back in 2022.
In her video speech at the summit, the Minister stated $5 billion in additional development of beds was required by 2030.
However CBRE reports that the number of new aged care home projects planned in each state is “less than the fingers on one hand”.
Chris pointed out that a back of envelope tally can only identify 20 aged care home projects that are spade ready. Any other new projects will require around five years of development proposals to get to construction stage.
The sector has a responsibility to provide leadership to achieve the fast tracking of many more developments, plus conceive new accommodation services that can be brought onstream fast to support older Australians with acuity.
Retirement villages with the new Level 5 home care packages that have been hinted by the Department will be available in July 2025 will be one solution.
