industry & policy
Can ’ t afford not to pay
The older population keeps growing and so does the need for funding and systems that will support their healthcare needs ; cuts are not an option .
By Neil Fawcett
The collaborative response to aged-care reform in the lead up to the federal election was promising . Various agencies across industry and government have responded with outrage to the proposed billions in cuts to aged care , shedding light on the multiple challenges ahead for Australia ’ s ageing population .
The conversation on fiscals is proving to be significant as we transition to a model of home care and privatised funding . Healthcare providers have a great opportunity to be leaders here , working alongside government to educate older people and the community about the real price of aged care and available options . It ’ s less about pricing than it is about ensuring that people who need aged care have access to services when they need them , along with clarity on available funding , whether it be taxes , aged care insurance or costs directly payable by the consumer . We need clear , effective policies for agedcare providers to support this increase in consumer choice and demand .
Australia faces numerous challenges related to ageing . More than 15 per cent of the population is 65 or older . By 2031 , that number is expected to grow to more than 19 per cent , or 5.8 million people . There is a clear need to address a sustainable way forward for enhancing quality of life in old age . We are not in a position to be reducing $ 1.2 billion from our budget when , just last year , Australia had 1.2 million people receiving assistance for aged-care services . Without clarity on funding mechanisms or due warning , healthcare providers will be unable to meet this demand and will be forced to react to policy changes without adequate planning .
There are also challenges to meet related to sustaining the economy ’ s workforce strategy through this period of change and growth . Aged care is one of the largest industry sectors in Australia , with a combined workforce of 350,000 people . Research shows that 2000 Australians will turn 65 every week , with a further 1000 turning 85 . Of these people , potentially 400,000 will be living with dementia in four years , requiring specialised palliative care support for them and their families . Keeping in mind other social factors underpinning these challenges – such as income , cultural diversity and disability in older people – it is apparent that our system of aged care will need to be adapted to meet extremely diverse needs .
All of this means sufficient demand for the sector ’ s workforce to triple over the next decade . Yet almost 60 per cent of the current labour force will reach retirement age in the next 15 years . And even with such urgent need , quality and empowering older people with clear choices is as important as quantity . Discussions on this have progressed well , but the transition to a new system will involve many stages of rigorous evaluation and assessment . Providers can shape the evolution by responding to these needs with adequate levels of training , service and care that marry practical instruction with the benefits of emotional intelligence .
Our ageing population poses multiple challenges , but also provides lessons in foresight , adaptability and good governance . Aged care is an issue that will affect everyone at some point . We will be forced to deal with the emotional and financial consequences of sickness and old age in our loved ones before we come to that journey ourselves . We can choose to be leaders in this debate , instead of letting uncertainty lead us . Access to aged-care services must evolve , considering the needs of this generation and beyond . ■
Neil Fawcett is the acting chief executive of aged-care provider Benetas .
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