industry & reform
Aged care minister Anika Wells . Picture : Martin Ollman / NewsWire .
‘ Urgent issue ’
Government and opposition spar over home closures .
By Elise Hartevelt and NCA NewsWire .
Australia ’ s aged care minister has defended her unwavering commitment to the sector following criticism from the Opposition for exacerbating pressures on aged care providers .
Shadow Minister for Health and Aged Care Anne Ruston said Labor ’ s ‘ rushed ’ decisions on staffing requirements amid a national shortage had led to the closure of at least 17 aged care facilities .
“ They cannot deliver on their promises ,” Ms Ruston said , “ and aged care homes are now closing as a result of their illconsidered decision .”
Since last year , the aged care sector has faced staffing and financial challenges due to reforms introduced by Labor , including 24 / 7 registered nurses and minimum care standards .
Federal data estimated that 23 residential facilities had shut their doors since September 2022 , including 17 between September and February last year .
The sector is also under significant financial pressure , with 63 per cent of facilities operating at a loss .
Aged care advisory firm StewartBrown estimated that up to 50 residential care services could be closing their doors soon because ‘ they can no longer afford it .’
Aged Care Minister Anika Wells said the government had implemented various measures since last year to identify , monitor , and respond to providers at risk of closure .
In its recent federal budget , Labor earmarked $ 98.7m over the next two years for providers to improve their capability and financial risk management .
Overall , the government raised its investment in residential aged care from $ 16.4bn in 2022-23 to $ 20.4bn in 2023-24 .
“ We ’ re confident there will be a positive increase in providers ’ finances when the next quarterly results come through ,” Ms Wells told Aged Care Insite .
“ The Albanese government will continue to ensure residents are treated with the dignity older Australians deserve .”
Last April , aged care provider Wesley Mission announced it would close its remaining three facilities after facing difficulties attracting enough staff to meet the new standards .
Brightwater Care Group joined Wesley Mission shortly after , stating financial and staffing pressure led them to shut three of its smallest facilities .
Especially rural facilities reported difficulties in attracting staff to meet the round-the-clock nursing mandate , after which Labor eased the rules by the July 2023 deadline .
Ms Wells said the implementation of 24 / 7 registered nurses remained a priority , with flexibility granted to rural and remote areas .
“ The Aged Care Quality and Safety Commission is committed to working collaboratively with providers , focusing on effective care arrangements and regulatory compliance ,” she said .
Ms Wells emphasised the department offered other helplines for providers facing pressure , such as transparent guidelines and information on providers ’ responsibilities under the Aged Care Act .
Residents and their families were also receiving vital support through the involvement of representatives from the Older Persons Advocacy Network ( OPAN ), Ms Wells said .
“ The department assists providers in establishing effective channels for regular updates to residents , their relatives , and representatives .”
Ms Wells pointed out that ‘ more beds were opening than closing ’ in aged care .
“ More beds will ensure that older Australians have access to residential aged care when they need it ,” she said .
“ In just under four years , we ’ ve seen a significant rise in operational residential care places , with an increase of over 6,500 spots since July 2019 .
“ And an additional 47 services have opened , 11 in regional parts of Australia since July 2021 .”
But Ms Ruston said the federal government continued to overlook the main issue in aged care – its workforce .
“ For all their rhetoric on prioritising health and aged care leading into the election , the federal government continues to ignore the biggest issue facing both systems ,” she said .
“ By refusing to develop a strategy to address this urgent issue , our health and aged care systems remain under severe pressure .
“ Labor ’ s promises will have delivered only headlines and no practical outcomes .”
Earlier this month , Immigration Minister Andrew Giles announced a new Aged Care Industry Labour Agreement for providers to fast-track sponsorship of overseas direct care workers .
The visa is to streamline the hiring process and supply the sector with more workers from outside Australia .
Employers will no longer need to negotiate company-specific labour agreements for each aged care provider .
Additionally , providers will receive a federal investment of $ 11.3bn over four years to deliver a 15 per cent wage increase for aged care workers . ■
agedcareinsite . com . au 11