Queensland aged care data released in response to Queensland aged care lobbying

The Minister for Ageing, Mrs Justine Elliot, has released financial data showing Commonwealth financial support for Queensland aged care providers, which claims that over the last 10 years, Queensland aged care providers received the highest level of increases in financial support in the nation

Mrs Elliot cited recent projections from the Department of Health and Ageing which showed:

• Over the next four years, total aged and community care funding in Australia will be more than $40 billion, of which  Queensland will receive about $5.4 billion;
  
• This year (2008-09) Queensland aged care providers will receive more than $1.2 billion.  This represents an increase of more than 8% in the subsidy for a resident at the same level of frailty compared to 2007-08; and
  
• Queensland high-care providers recorded the highest returns in Australia after costs, in the order of $10.31 per resident a day in 2005-06.
  

The Federal Government released the data after a new grouping of Queensland aged care providers calling themselves the ‘Aged Care Alliance’, earlier this month claimed they need more financial support and claiming they were on the verge of financial ruin.

Mrs Elliott stressed there was scope for the Queensland aged sector to ensure to its own long-term future through industry re-structure, citing:

• Material from the Hogan’s Review of Pricing Arrangements in Residential Aged Care found that, on average, Queensland aged care homes were the second most inefficient aged care homes after Victoria;and
  
• the Bentley’s/James Underwood and Associates National Residential Aged Care Survey 2006-07 found that high-care aged care homes in Queensland made higher surpluses than high-care homes in all other jurisdictions.
  

In Queensland, there are about 500 services, providing more than 30,000 residential places. Some 71% of residential care providers in Queensland are not-for-profit, which is above the national average of 61%.

The Minister said Queensland has had the biggest increase in funding rates over the last decade.

Mrs Elliot said, “I want to work with the Queensland aged care sector to ensure its long term viability.  We provide record funding, but they have to also improve their practices.”

As suggested by most Bentley’s MRI and Stewart Brown reports, there are more financial returns to be had, if providers can improve their efficiency towards the levels achieved by those providers in the top quartile of economic performance.