LASA Industry Viability Action Plan
18 September 2012

LASA Industry Viability Action Plan

Recent changes to the way aged care providers are funded are causing some serious concerns among the aged care industry.

These concerns have been magnified following the release of a new report which has identified a potential industry-wide funding shortfall of $750 million over the next two-and-ahalf years. This translates to an average revenue loss of more than $125,000 per annum per aged care facility.

As an industry, we believe this new funding model, introduced by the Federal Government, needs to urgently be reviewed. Otherwise, there could be an impact on staffing levels and on the important services which are the very foundation of the quality care we provide.

Benetas is working with our national industry body, Leading Age Services Australia and other stakeholders to inform the Federal Government about the impacts of this new model and to urge them to find a long-term solution.

We are strongly advocating a move away from a funding model which is artificially tied to Federal Government budgetary constraints to one which genuinely matches care funds to people’s needs. We strongly support the call from the National Aged Care Alliance for an independent and comprehensive cost of care study into aged care funding.

While the industry is pursuing this longterm goal, we’re also committed to working with the Federal Government to address the immediate impacts of its changes to the Aged Care Funding Instrument (ACFI), the assessment tool that determines how much funding is allocated to each resident.

We are urging the Federal Government to commit an additional $1.1 billion over the next four years to help cover the potential revenue shortfall faced by providers. Further, ACFI funding levels, which were frozen on 1 July, 2012, need to be re-instated and increased by 1.6 per cent to assist providers to meet ever-increasing costs. Aged care funding is an important issue and one which the wider community needs to be aware of and involved in.

We urge you to ask your local Member of Parliament: “What are you going to do to help ensure a viable aged care industry for all Australians?”