LASA comes forward about cost of aged care

Leading Age Services Australia (LASA), like many industry bodies, is constantly bringing issues to the fore in the aged care sector. With the cost of running facilities such a pertinent issue, it’s no surprise to see the body come forward once again.

In early July LASA explained in a release the costs of caring for elderly Australians are actually three times what the government currently believes. In turn, it was noted that funding calculations are in need of an urgent review.

“As the voice of aged care, LASA urges the department to reconsider how it calculates indexation for aged care because the true costs of care are not recognised,” CEO of LASA Patrick Reid explained.

LASA called attention to two new sets of figures. One from the Department of Social Services, which points to an indexation rise of 1.3 per cent, and the other from the Australian Bureau of Statistics, which shows healthcare costs have risen by 4.4 per cent.

CEO of LASA Victoria, Trevor Carr, said that change is needed, as aged care is currently under supplied and understaffed. He also noted the necessity of further funding given the growing population.

“Victoria requires $9 billion of residential capital investment to meet the target of 35,000 additional residential aged care places in the next 15 years,” Mr Carr explained.

In addition to this, a review of indexation calculations along with realistic funding was said to be the only way to ensure the Australian aged care sector remains sustainable for the foreseeable future. Certainly no small task, albeit a highly necessary one.

Aged care in Australia is changing, and it’s going to be important for providers to stay on top of facility financials and, perhaps most importantly, provide a high level of care.

What do you think are the biggest opportunities for success in the aged care industry today? Please contact us and let us know!