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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