Fed: Govt denies aged care in crisis

AAP General News (Australia)
02-13-2004
Fed: Govt denies aged care in crisis

By Emma Ambler

SYDNEY, Feb 13 AAP - The federal government today denied the aged care sector was in
crisis and said cost pressures would be addressed by an inquiry currently underway.

The Australian Medical Association's (AMA) National Aged Care Summit yesterday called
on the federal government to rescue financially-strapped aged care service providers with
a funding increase of $10 per patient per day.

The call for help came just days after the Salvation Army announced it would sell 15
of its 42 aged care centres due to rising operating costs.

But federal Minister for Ageing Julie Bishop, speaking at the opening of a hotel-style
aged care facility in Sydney, said funding to the sector had doubled from $3 billion to
$6 billion in the past seven years.

"It (the industry) is not in crisis," she said.

Although Ms Bishop conceded cost pressures did exist, she refused to comment on the
likelihood of a funding increase until findings from the government-commissioned Hogan
inquiry were revealed.

"I'll await his (Professor Hogan's) recommendations before commenting further," she said.

"Our number one priority is to ensure that residents of aged care facilities in Australia
receive high-quality care and we know that that brings with it cost pressures."

Ms Bishop would not say when the report - due to be delivered to the government by
Prof Warren Hogan last December - would be released.

"He's indicated that the final report should be delivered shortly, he hasn't given
a date," she said.

Ms Bishop said it had been delayed by late submissions from service providers and consultants.

"Submissions on data were still coming in in December," she said.

"It would be irresponsible not to give him (Professor Hogan) an extension of time."

She said there was no shortage of beds in aged care facilities for elderly Australians.

"Waiting lists don't mean that there's a shortage; a number of people put their names
down at many places," Ms Bishop said.

In the past six years, the government funded over 52,700 new residential care places
including aged and community care facilities, and more would follow, she added.

"Our planning ratio ensures that we have enough places allocated each year to meet
demand ... it's sensitive to population changes," she said.

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KEYWORD: AGED SALVOS BISHOP

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