LASA: 41% aged care operators ‘likely’ to reduce direct care staff

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Leading Age Services Australia (LASA) has surveyed its members and found many providers say they will be forced to withdraw services, cut jobs and reduce investment.

Four out of five aged care providers believe current financial pressures constrain their ability to deliver the care their clients and residents need and expect.

LASA surveyed 170 respondents servicing at least 70,000 older Australians both in residential care and home care.

Respondents warn that unless the Government takes urgent action to address financial pressures their ability to consistently meet the needs of those, they care for will be further compromised.

This will impact directly on older Australians in care and will also likely result in the withdrawal of services, job losses and further reductions of investment in services and infrastructure.

Other key findings show that if conditions do not improve:

  • 15% said it was likely or very likely that they would have to withdraw services
  • 41% said it was likely or very likely that they would have to reduce direct care staff.
  • 52% said it was likely or very likely that they would have to reduce non-care direct service staff.

LASA CEO Sean Rooney says the survey results back up industry analyst StewartBrown’s Aged Care Financial Performance Survey for March and the Government’s own Aged Care Financial Authority’s most recent report that show about 44% of residential care providers operating at a loss and earnings per home care consumer falling 60%.

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