Government squeeze on Aged Care
June 29, 2010
Aged Care service providers across the region are warning that they face major financial difficulties if the Gillard Government continues to under-fund aged care facilities.
Dr Sharman Stone, Federal Member for Murray said aged care service providers in the electorate were seriously concerned about how they will be able to keep their doors open without an increase in funding.
“The Labor Government has failed to increase aged care funding in line with the Consumer Price Index.
“We must not see our smaller aged care providers forced to close because of a government’s refusal to properly fund vital services. The Rudd-Gillard Government has spent billions on free pink batts for ceilings and has mismanaged school buildings, but has turned its back on aged care.
“Despite rising energy costs, recent wage increases, increasing costs in food and medical supplies and extra costs to meet accreditation standards, the Labor Government has offered only a 1.7% rise in funding for the 2010/2011 financial year.
Sharman Stone said that operating cost for local aged care service providers has increased between 5 and 7%.
“Local managers are telling me that they are at the point where they must put off staff or reduce their services because they can no longer afford to run on current funding.”
“Although the Government has referred the cost of aged care to a Productivity Commission investigation, the report is not due until mid-2011. This is far too late for many aged care operators, particularly the small stand-alone centres in country towns.
“In rural areas we do not have the luxury of finding another aged care provider up the road. Closing our smaller providers down would mean families would have to drive long distances to visit their loved ones,” Sharman Stone said.