Issues facing aged care services in rural and remote Australia
Issues facing aged care services in rural and remote Australia Report
- Author(s): Richard Baldwin, Marguerita Stephens, Daniel Sharp, John Kelly
- Published: 2013
- Publisher: Aged & Community Services Australia
Abstract: The ongoing reforms of aged care in light of the Productivity Commission and the Living Longer Living Better initiatives has created potential opportunities and challenges for rural and remote aged care providers. These changes relate to viability and the funding mix but the changes also tap into fundamental issues of service delivery. Approximately 11.3% of Australians aged 70 and over live in outer regional, remote and very remote areas. Residential aged care facilities in outer regional, remote and very remote areas are generally small in size. The facilities lack the economies of scale and economies of scope which are found in more urban areas. Aged care costs more per patient in these settings on a ‘like for like’ basis while the aged care system provides only minor opportunities for operators to recoup these above average costs. There is little evidence to suggest that extra funding such as the viability supplement is an effective offset against these increased costs. Many aged care facilities in rural and remote areas operate on the cusp of viability. These facilities will, from 1 July 2014, be particularly sensitive to the changing payment settings of residential care. Residents will pay for accommodation costs through a refundable accommodation deposit or a non-refundable daily accommodation payment or a combination of both.