21 January 2005
Further Evidence of the Struggle in the Aged Care Sector
The recent announcement that another Religious and Welfare provider - Methodist Mission Northern - is facing a massive
deficit is just another example of a provider struggling to maintain residential services for the elderly. The fact that
another provider is in this position does not surprise the New Zealand Private Hospitals Association (NZPHA).
Carolyn Cooper Executive Director of NZPHA says “this is another graphic example of a quality caring provider, who has
been delivering services to our older people for years, reporting a significant deficit of $600,000 despite undertaking
a major restructuring exercise.”
“The continued massive shortfall in funding for aged residential care is hitting not for profit providers first as they
do not often have other business interests to cross subsidise their services with”, says Ms Cooper.
“Sadly our older people are not seen as a priority by this government and as the funding to the aged residential care
sector further erodes you will see more examples of providers who cannot afford to stay in business”, she said.
“We are working with the Government and DHB’s to look at the situation more closely, however, a sustainable funding
pathway must be put in place quickly to ensure that the current crisis does not affect the care of our older people,” Ms