The $2 billion “missed opportunity” for aged care
The Federal Government’s additional $2 billion promised last December to address the delayed discharge of older people from state-run hospitals was “conspicuously absent” from Friday’s hospital funding deal, according to the peak body for aged care providers.
Ageing Australia said the record-funding agreement between State and Federal Governments missed a “golden opportunity” to address the crisis that sees nearly 3,000 older Australians in public hospital waiting to access aged care.
Months of tense negotiations ended after the Federal Government agreed to boost public hospital spending by $25 billion over five years.
The Federal Government’s total spending is expected to be $220 billion from 2026-27 to 2030-31, or a 12% increase. But the previously reported $2 billion to address the issue of older patients stranded in hospitals was missing from the deal.
“This was a rare opportunity for state and federal governments to work together to improve outcomes for the thousands of older Australians stuck in hospital for extended periods, but that opportunity has been missed,” said Ageing Australia CEO Tom Symondson.
Tom said the ageing population means pressure on hospital will only accelerate.
Within only five years, the number of Australians aged 85 and older will be up 25% to 753,000. Within 10 years, the number will be beyond one million, or a 67% increase.
States and Fed Govt need to act: Tom Symondson
All levels of Government must take substantial action, including building every year to keep up with demand, Tom said.
Only about 800 new aged care beds were added in 2024-25, with about 10,000 aged care beds estimated to be needed annually for the next decade.
In addition, many older people in hospital need higher levels of care and support than residential aged care can provide, an issue that State and Territory Governments can address.
“The Cook Government [in Western Australia] has recently committed to a $100 million Low Interest Loan Scheme to support providers to build beds for older people with lower means,” Tom pointed out.
“And in Victoria, the state government has a long history of providing aged care services, particularly for those older people with higher levels of clinical need.”
In a statement, Catholic Health Australia (CHA) said private hospitals, such as those operated by CHA members, have excess capacity, and State Governments could reduce hospital waitlists by making better use of them.
