THE aged-care sector is set for further changes following the release last week of a Productivity Commission report, ‘Caring for Older Australians’.
Despite the sector’s growth in Western Australia during the past year, the inquiry identified the increasing needs of an ageing Australia, in particular the baby boomer generation, as requiring significant reform.
Ranked by total bed capacity on WA Business News ‘Book of Lists’, the top 12 aged-care facilities have grown by a total of 661 beds since 2010.
Aegis Aged Care Group remains number one, with a total of 2,204 beds across high-care and low-care beds (up from 2,002 last year), while Uniting Church Homes grew by 135 beds to 1,095 to take second ranking from The Bethanie Group, which grew by 9 beds to 1010.
Brightwater Care Group went from having 720 beds in 2010 to 916 this year, and the company scaled from seventh ranking on the list to fourth this year.
Regis also grew its bed capacity, by 21 beds to 558, but remains at eighth on the list.
Domain Principal Group wasn’t on the list last year, but is ranked 11th in 2011 with a capacity of 342 beds.
The growth is a positive sign for WA.
While just more than 1 million Australians are currently accessing aged-care support, the productivity commission expects that to grow to more than 3.5 million by 2050.
“The National Health and Hospitals Reform Commission considered that significant reform is needed to the aged-care system, including its relationship to the rest of the health system, if it is to meet the challenges of an older and increasingly diverse population,” the inquiry said.
The report identified that a significant increase in demand meant looming pressure for the industry.
Principal concerns were the ageing of Australia’s population and shifts in the type of care demanded, an increased preference for independent living arrangements, and choice in aged-care services. Added to that were the increasing prevalence of chronic disease among the aged (and costs associated with care), and reduced access to carers and family support.
The report said it was vital to secure a significant expansion in the aged-care workforce at a time of ‘age induced’ tightening of the labour market and wage differentials with other comparable sectors.
The commission said the major weaknesses of the current system included delays in care assessments and limits on the number of bed licences and care packages, which acted as disincentives for care providers.
Constrained pricing models and the rate of indexation for subsidies, together with difficulty in obtaining individual finance, is also causing problems. The report said unequal government contributions between community and residential care should be abolished in order to create an even playing field.
Under the proposed reforms, individuals will be able to access a government-sponsored line of credit (under the Australian Aged Care Home Credit Scheme) and choose whether to receive care at home with their approved provider.
Distinctions between residential low and high care, and between ordinary and extra service status, would also be removed in aid of creating equality between care options and prices.
The commission also recommended the development of a simplified ‘gateway’ for easily understood information surrounding aged-care options and assessment of their care needs, and their financial capacity to contribute to the cost of their care.
“The current system is complex and difficult to navigate. For older people to be able to exercise choice, they need relevant, current and accurate information that they can easily understand,” it said.
“The gateway would consolidate the many assessment processes currently undertaken by HACC providers and Aged Care Assessment Teams (ACATs).
“Assessors would use a set of criteria that would apply for all levels of care and support in both community and residential settings. The gateway would arrange for Centrelink to undertake a separate assessment of the older person’s financial capacity to make co-contributions, where required.”
The Productivity Commission suggested the reforms be phased in over three stages. Stage one would set up the necessary bodies to administer the changes and be complete within two years; stage two would finalise major regulatory changes and be complete within five years; and stage three would remove supply systems from aged care operators and assess the implementation of the previous stages and be complete beyond the five years.