‘BROKEN’ SYSTEM NEEDS FEDERAL SUPPORT

FIXING a “broken” aged care system could take a decade without federal support, an industry leader says.

Odyssey Lifestyle Care Communities CEO Phil Usher believes improving aged care will be a key issue in the lead up to the federal budget and election.

Odyssey operates outside of the Aged Care Funding Instrument (ACFI), meaning it offers “home care packages” inside the retirement facility.

Each resident is assessed by a team and allocated an amount of money based on their level of need.

ACFI facilities claim a residential care subsidy for each resident that permanently enters their care, which changes depending on ongoing care needs.

The amount of ACFI claimed can affect how much a resident pays in fees.

Mr Usher, who started Odyssey after his mother passed from dementia 20 years ago, said he believed it would be a decade before other providers caught up.

“(Other providers) make their money after what remains in the bank, after they dish out the care to people in their facility,” he said.

“The old system is broken. It doesn’t work.

“I raised it more than a decade ago and they all just sat there thinking, ‘we’ll deal with that when it happens’.

“It’s very typical of people in our industry, people don’t move very quickly.

“So the retirement guys just now are having a symposium talking about how we deliver care. I just can’t go because it drives me nuts, they are so lethargic.”

He added he didn’t believe the old system could keep operating.

“If the government keeps subsidising under the old system, it’s going to go broke,” he said.

“Because the country can’t afford to foot the bill of the growing group of elderly coming through.

“What needs to happen is to adopt the system we use or similar, and where people can afford to pay, they do. Where people can’t pay, that’s what the government should be for.”