Public Aged Care Funding Fails to Reach Patients
The government has allocated $2.2 billion to the sector this year, but there are concerns that the funds may not be reaching patient care.
Australia’s federal government has announced $2.2 billion (US$1.4 billion) in funding for aged care services this year, as part of a larger $12.6 billion effort for the sector.
The budget includes initiatives to address wait times for home care packages, strengthen the workforce, improve safety regulations, and upgrade technology.
However, a study by the University of Technology Sydney suggests that the funding is falling short of its objectives.
The study found that nearly two-thirds of residential aged care facilities did not meet mandatory care targets despite making profits and receiving government funding.
Currently, residents in aged care facilities are required to receive about 200 minutes of direct care daily, including 40 minutes with a registered nurse.
The study revealed that 63.9 percent of profitable aged care facilities were not utilizing government funds to meet these care standards.
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Advocates for the elderly, such as the Older Person’s Advocacy Network and Council on the Ageing, are urging the government to implement a new legal framework to ensure providers use funds appropriately.
The Aged Care Quality and Safety Royal Commission recommended the introduction of a new aged care act to enhance transparency, noting that many believe this could lead to improved accountability.
While the royal commission advised the introduction of the act by July 1, 2023, the government is still in the process of developing it.
Union Worries Government Won’t Monitor Fund Usage
The Australian Nursing and Midwifery Federation (ANMF) is concerned that the government’s planned 15 percent pay increase for aged care workers may not reach the intended recipients.
ANMF federal secretary Annie Butler highlighted the importance of a legal framework to ensure that funds are directed towards workforce improvements.
“While we appreciate the government’s efforts to raise aged care wages, we are concerned that many nursing home operators may not pass on the funds to workers as intended,” Butler stated.
“For the past 30 years, private aged care operators have received billions from the government for wage increases, but there is no guarantee that this money will be used appropriately.”
Butler emphasized the risk that government funds allocated to the aged care industry may only benefit the operators’ bottom line.
“While some providers may allocate funds for wages, the government cannot rely on trust alone to ensure proper utilization,” she added.
The Epoch Times has reached out to federal aged care minister Anika Wells for comment, as well as the Aged Care Industry Association, which was unavailable for comment at the time.
