AN OVERVIEW OF THE AGED CARE SECTOR IN 2003 TUESDAY 22 JULY, 2003

AGEING PORTFOLIO n The Commonwealth’s outlay into Ageing portfolio has grown from 3 billion dollars in 1996 to 6 billion dollars for this financial year n During that time, the aged care sector has transformed from a cottage industry to an increasingly sophisticated capital intensive industry n The steady ageing of the population requires the whole community to plan for those challenges

AGED CARE BACKGROUND n The previous Government neglected aged care for 13 years. n The Auditor-General’s 1998 Report “The Planning of Aged Care”, reported a shortage of 10,000 aged care places across the country. n Before the 1997 Aged Care Act, there was neither an Aged Care Accreditation and Standards Agency nor an Aged Care Complaints Scheme.

AGED CARE PLACES n There are currently more than 175,000 operational aged care places across Australia. n The Federal Government has released more than 52,700 places in the last five years. n The Federal Government has made a commitment to provide 200,000 aged care places by June 2006 and is on track to meeting that target.

AGED CARE PLACES n Each year there is an Aged Care Approvals Round where places are allocated according to a planning formula of providing 100 places per 1000 people over the age of 70. This is to ensure a fair and equitable distribution of places. n Formula is under review to reflect trends. n The Department analyses demographic data in aged care planning regions across the country as well as the planning ratios for that area.

AGED CARE PLACES n There are also Aged Care Planning Advisory Committees which provide information to the Department about local aged care needs and issues in planning regions.

2003 AGED CARE APPROVALS ROUND n A national total of 8624 new aged care places worth $185.7 million in recurrent funding will be allocated in n This includes 2,144 new aged care places for Victoria comprising: 1759 residential places; 216 Community Aged Care Packages; and 169 flexible care packages.

AGED CARE PLACES IN VICTORIA n In , the Australian Government spent approximately $1.3 billion on aged and community care services in the State of Victoria. n Since 1999, a total of 7070 new aged care places worth more than $180 million in annual recurrent funding have been allocated to Victoria.

OUTSTANDING BEDS n When I became Minister, I ordered an investigation of outstanding beds, that is, the number of beds which had been allocated for more than two years but were not operational. n Providers have two years by law to convert their bed licences into operational places. n The investigation found there were 2,816 outstanding licences across the country.

OUTSTANDING BEDS n I ordered a crackdown and sent a strong message to the sector that this was not acceptable Within 9 months, a total of 1,134 beds had become operational including 306 in Victoria. n A further 962 beds are expected to become operational within 12 months. n As well, 68 bed licences have been revoked, 59 have lapsed and four have been surrendered.

OUTSTANDING BEDS n Providers are now required to submit three-monthly progress reports and it has been made clear to the sector that, if satisfactory progress is not made, the Department will consider revoking their licences.

VIABILITY ISSUES n The 2002/03 Aged Care Budget provided more than half a billion additional dollars for aged care, including $211 million in increased subsidies which are paid directly to aged care homes. n This extra $211 million is to help providers meet labour costs.

VIABILITY ISSUES n As well, the Federal Government honoured its election commitment to have a pricing review into residential aged care and $7.2 million was allocated for that. n Respected economist Professor Warren Hogan is heading the review and I am urging all aged care homes to lodge submissions as well as their financial records, which will be analysed by KPMG.

VIABILITY ISSUES n The Federal Government recognises viability issues in smaller homes in regional and rural areas and last year allocated $31.6 million in capital funding as well as more than $13 million in viability supplements. n Since 1998, some $31.8 million has been allocated to services located in Victoria for capital works to upgrade and improve building standards.

VIABILITY ISSUES n Residential Aged Care sector is almost a $6 billion sector n Obviously the structural ageing of the population is driving further growth in the Aged Care sector n According to the National Seniors Association, Australians aged 65 and over have more than $300 billion worth of assets

COMMUNITY CARE REVIEW n Several reports have highlighted the need for a better integrated community care system in Australia. n We know that people want to stay in their own homes for as long as possible and the Australian Government has responded to that in its policies and programs.

COMMUNITY CARE REVIEW n Home and Community Care is the biggest community care program and, in the three months to March last year, provided services like Meals on Wheels to more than 320,000 clients. n The Federal Government has also substantially increased the number of Community Aged Care Packages, from about 2000 in 1995/96 to 28,000 today.

COMMUNITY CARE & ACUTE/AGED CARE INTERFACE n Other important components of community care include, respite care, services to carers and day therapy centres. n To improve post-hospital services, a number of pilot projects have been established under the Innovative Pool n States and Commonwealth are to examine acute/aged care interface through a series of collaborative projects to improve information base underpinning policy development work

COMMUNITY CARE REVIEW n The Department has been examining how we can improve the community care system for about six months. A discussion paper will be released for public comment. n Issues that have been examined include having a “one-stop-shop” where people can go to get information about the aged care system and referrals as well as a common assessment for clients and a case management approach to continually monitor and assess their care needs.

PAPERWORK IN AGED CARE HOMES n It was clear to me from speaking to the aged care sector and visiting homes that staff were frustrated by the paperwork burden. I am determined to remove unnecessary paperwork requirements so nurses can concentrate on what they are trained for - providing the best possible care. n I ordered a review of the Residential Classification Scale (RCS) which is the funding system for aged care homes.

PAPERWORK IN AGED CARE HOMES n The Review recently reported to me and I released the Government’s response. n A range of projects will be trialed in homes to reduce the paperwork burden including: A reduced and simpler questionnaire for homes to complete; Independent assessors for resident classifications; and A National Care Plan which can be used in all aged care homes if they choose.

PAPERWORK IN AGED CARE HOMES n Other action will include providing more information to homes about what they need to document and developing a Minimum Data Set for the sector which will profile residents, their level of frailty and needs.

AGED CARE WORKFORCE ISSUES n Several reports, including the Review of Nursing Education, have highlighted the problem of a nurse shortage in Australia, and around the world. n The 2002/03 Budget provided $26.3 million to encourage more people to enter or re-enter aged care nursing, especially through Aged Care Nursing Scholarships and $21.2 million to assist in education, and training for other aged care workers.

AGED CARE WORKFORCE ISSUES n We also need to create a better career path for nurses in aged care. My office has been working with the sector, particularly the Australian Nursing Federation, to create an enhanced scope of practice for enrolled nurses, so they can, for example, administer medications. n We are also investigating a nurse practitioner role for registered nurses, and examining a trial and a regional approach.

AGEING ISSUES n I see my role as Australia’s first Minister for Ageing as an educational one, to raise awareness in the community about our changing demographic and promote national discussion about the consequences of our ageing population. n Today, 13% of Victorian population is aged 65 year and over; n In 2040, 26% of Victorians will be aged 65 years and over.

AGEING ISSUES n I have established a National Advisory Committee on Ageing which is chaired by former Victorian Governor Sir James Gobbo. The Committee will examine two key issues - mature age workforce and declining fertility rates - and report to the Government. n The Committee will host a symposium in Sydney in August to discuss “Work Ability” and the need for employers and employees to recognise their role in encouraging more mature-age workers.

AGEING ISSUES n I have also established a Building Ageing Research Capacity Group which is hosting a symposium in September about ageing research. This group comprises researchers in the ageing field with the aim of promoting the need for more research about ageing issues. n In parallel, the Prime Minister’s Science Engineering and Innovation Council has raised the issues of healthy ageing and brain and mind diseases as national research priorities with Cabinet members