There is widespread concern across the sector there will be no lasting changes to come out of the Royal Commission into Aged Care because of a lack of bipartisan support for reform, potentially unrealistic recommendations and timeframes and commitment from all sides to transform the system.
These are valid concerns.
Think about it. We now have multiple Royal Commissions and inquiries into disability, veterans’ suicides and bushfires competing for attention.
The banking Royal Commission has seen some changes forced through (see yesterday’s newsletter for the details), but they are being driven by the Treasurer Josh Frydenberg.
The financial services sector is also footing the bill – not the Government.
They are merely an observer – whereas in aged care, they have skin in the game.
Will the Government want to front up the cash required to bring about the kinds of changes the Commissioners are talking about?
There is also the issue of leadership.
Does Senator Richard Colbeck – as the Aged Care Minister – have the gravitas to push for the funding needed to implement the Commissioners’ recommendations?
The answer is no – he is not in Cabinet and is currently balancing aged care with his sport and youth portfolios.
Health Minister Greg Hunt on the other hand is in Cabinet. Is he aware of what the Royal Commission is trying to achieve? Perhaps.
And has the language of the Interim Report terminally damaged the attitude of operators to the Royal Commission?
Have they lost faith – and more importantly interest – in the outcome?
We have already seen CEOs become increasingly outspoken about the tone of the Royal Commission’s Interim Report, rejecting its assessment of the system as “cruel and unkind”.
The consensus seems to be there will be one or two changes but not the “fundamental redesign” that the Commissioners were so determined to make happen in the Report released last October.
I spoke to several in the sector to gauge their views.
Frank Price, the CEO of Royal Freemasons’ Benevolent Institution, says he is keen for the Royal Commission to be the catalyst the sector needs for change.
“However, I am skeptical as to whether the Commissioners will be able to deliver on this – or in the timeframe in which we need it,” he said.
While Frank welcomes the short-term measures around home care, younger people and restraints from the Interim Report, he says more is needed with over 50% of providers making a loss.
“I am expecting that quite a few providers will cease to exist in the next 12 months, but I cannot see other providers taking on the burden of underperforming facilities,” he said.
“I fear that unless we have providers close down and significant publicity around what this will mean for our older population, the seriousness of the issues facing the aged care sector will not be fully appreciated and we will not get the changes we need before 2022.”
Another CEO from a large Not For Profit said they did not believe there is the leadership within Government at present to take on the Commissioners’ Final Report.
“The Royal Commission are making some significant, game changing recommendations that require a firm commitment and partnership approach,” they said. “It would be good if there was a bi-partisan approach.”
They also pointed to the lack of direction from the Government on the goals for the system – whether it should focus on being a safety net for older people or ensuring quality of life – and the preparedness of the Department of Health to work closely with the sector to implement the reforms.
COTA CEO Ian Yates says that based on the work that is currently happening with the Commissioners’ consultation paper, roundtable discussions and next week’s workshops, he believes is quite possible the Royal Commission will result in “very significant change” but “it is not guaranteed.”
“It depends on a lot of factors,” he added, listing six areas of concern:
- “the nature of the recommendations including their consistency with prior review and inquiry recommendations,
- the degree of consistency with and support from leading reform stakeholders,
- how realistic the recommendations and the transition strategy are – which is not to say they shouldn’t be aspirational, they should be, but it needs to be clear how they can be implemented (e.g. financing methods),
- degree of community support and priority to recommendations,
- government will for change, notwithstanding the normal industry resistance to change and inertia; and
- degree of bipartisanship that can be achieved.”
It would appear the fate of Australia’s aged care system will come down to how far our politicians are willing to go to reform the sector – will they support the Royal Commission’s endgame?
Frank and Ian will both be appearing at the LEADERS SUMMIT along with 30 other industry leaders to discuss the ‘businesses’ of retirement living and aged care now and through to 2025.
Join the conversation by registering HERE for Thursday 26 and Friday 27 March, at the Hyatt Regency Sydney, overlooking Darling Harbour and Barangaroo.
Pictured: Minister for Health Greg Hunt, Minister for Aged Care and Senior Australians and Minister for Youth and Sport Richard Colbeck, Minister for the NDIS and Government Services Stuart Robert and Prime Minister Scott Morrison announcing the $537 million package in response to the Royal Commission’s Interim Report in November 2019.
