Tough times for care providers
Warning bells are sounding for some aged care facilities in the Waikato because of increased costs, insufficient funding and looming workforce shortage.
Governmental policies regarding pay equity, immigration, funding and postcode healthcare were threatening the stability of age care providers.
Those were the points outlined by New Zealand Aged Care Association chief executive Simon Wallace when he presented to members in Cambridge recently.
Last year the National Government awarded on average a 21 per cent rise for care workers. There are no issues with better pay for caregivers, now it’s the flow on effect with other workers in the industry,’’ Walker said.
‘‘The Government signalled an increase in the minimum wage which will impact providers even further.
‘‘Funding and issues related to their payments are being felt in not-for-profit rural facilities in the Waikato.
‘‘Our association set up a transitional fund to assist.
‘‘It’s soon to run out and with no signal from the Government over an increase in funding, some facilities are realistically facing closure.’’
Wallace said it was becoming difficult to retain people for the workforce. Figures showed staff at aged care facilities in the Waikato included 30 per cent who were migrants.
‘‘Problem for us is the current policy for visas only allows overseas workers in the country for three years. This Government is not open to any discussions to change the status quo. With an unemployment rate under 4 per cent, somehow we have to find New Zealanders who are willing to train now to work in this industry.’’
Exacerbating the issue, baby boomers looking to retire were expected to put more pressure on the sector in the next decade and beyond.
‘‘The age care sector currently employs 1900 caregivers in rest homes. The Waikato DHB has indicated this will need to increase to at least 1000 more workers before 2026.’’
Other issues related to imposed compliance costs which had to be passed on, Government funding would not cover it.