Govt not doing enough to fund aged care properly - survey

2:06 pm on 29 March 2023
Close up granddaughter takes care of the health sick grandmother at home by holding hands. Lifestyle support the love of the family.

Only 22 percent in a recent survey said they were confident their family members would receive good quality aged care. Photo: 123RF

There appears to be widespread public concern about the adequacy of the aged care sector to look after an ageing population, amid chronically low staffing and funding levels.

Research commissioned by Aged Care Matters indicated about two-thirds (65 percent) of a cross-section of 1089 people said the government was performing poorly when it comes to aged care. About 24 percent were neutral, while the rest (7 percent) had no concerns about current funding and staffing levels.

Only 22 percent said they were confident their family members would receive good quality aged care, while a third (37 percent) were not at all confident.

The level of concern was more acute among older respondents, particularly women, who were much more likely (72-74 percent) to be aware of funding and staffing gaps.

Aged Care Matters member and chief executive of MetLifecare Earl Gasparich said the former minister of health promised to allocate $40 million to address wage parity issues this financial year, with $200m annually from the following year.

"Despite announcing this significant funding increase and $40m for the next few months, when you get into the negotiation, we end up with… a fraction of that, which is just not enough to achieve parity," Gasparich said.

However, to date the government had allocated just 75 percent of the $40m to the aged care sector to address the parity issues, with about 80 percent of the sector accepting offers.

Te Whatu Ora group manager Mark Powell said the contribution to closing the pay gap for aged care nurses was significant.

"This initiative is an early action to bolster the funded sector workforce while health agencies undertake work to address the supply issue," Powell said, adding that attracting nurses to the sector was a priority.

In addition to the wage parity funding, Te Whatu Ora had allocated an additional $93.9m a year to the sector.

Gasparich said the money was only trickling through, and was still nowhere near enough to address years of underfunding.

"It's a fraction of what's required and this is the problem," he said, adding the sector had been shrinking in terms of staff and beds.

"We've had 1200 beds close in the sector over the last 12 months. I mean, if that's not a sign that something's wrong here, I don't know what it is.

"And despite that, we end up in these negotiations where the sector comes armed with real objective information - evidence about what the funding gap is - and it gets ignored. You end up in a horse trade, where you end up with a fraction of what's required."

Gasparich said there will be more bed closures, adding it would cost several hundred million dollars to close the gap.

"The sector is doing everything it can to maintain viability, but it really just needs to be heard, and that's why these surveys et cetera have been completed.

"We need to get to the table with the government and revisit the funding model, revisit how to address the workforce shortages and find sustainable long-term solutions for the industry. We need committed funding over many years to address this gap."

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