Big issues not yet addressed

The New Zealand Aged Care Association has welcomed a report recommending changes to the way the sector is funded, but has warned that more investment was needed if the care of older New Zealanders was to be sustainable.

NZACA chief executive Simon Wallace said the sector welcomed a ‘rurality adjustor,’ which recognised the financial sustainability challenges faced by aged care facilities in more rural and remote areas. It also supported a ‘turnover payment,’ recognising the time and cost involved in the increasing number of shortstay and respite residents.

“However, the report is silent on the insufficient level of funding provided by the current daily fee to support investment in new aged residential care facilities. More than half of current facilities are over 30 years old, and will need upgrading for the growing number of older New Zealander’s requiring care,” Mr Wallace added.

“This is a major issue for government. Providers are only able to invest in new facilities through offering premium charges for rooms superior to the 11 square metre room with shared facilities they are funded to provide.”

It was also disappointing that the report failed to address other key issues, including the workforce and immigration.

“We are facing a looming shortage of caregivers due to immigration policies that will see a whole cohort of valued migrant caregivers sent home next year,” he said.

“Employers invest heavily in training and supporting these valued staff, who are critical to filling the gap in New Zealand’s caregiver workforce.

“Likewise, there is no mention of the unacceptable pay funding disparity between registered nurses working in aged care and their counterparts in public hospitals. On average aged care nurses are paid around $10,000 a year less than their DHB colleagues.”