Crisis Looms For Aged Residential Care

Crisis Looms For Aged Residential Care

A crisis is looming in the aged care sector because of chronic shortages of staff and under funding, HealthCare Providers NZ, the major organisation representing the aged care sector, said today.

Chief Executive Martin Taylor said this would soon translate into a crisis of care delivery in 2007 and beyond.

"Last year, and for 2005, we've had an increasing critical nurse work force shortage caused by a 20 percent increase in nurses wages following a $500 million wage settlement between the government and nurses union," Mr Taylor said.

"There's always a cause and effect, and it is our elderly who have paid their taxes and provided a lifetime's work in our communities who will ultimately suffer through a crisis of care delivery."

Mr Taylor predicted that this situation could get worse as private health nurses have just won a 19 percent wage increase.

"DHB Hospitals and Primary Health Organisations are funded at a higher level for aged care, which has caused an acute shortage of nurses in our sector. The Government needs to address this situation to avert the looming crisis," Mr Taylor said.

The sector has been trying to win compensation for the impact of the nurse settlement, but negotiations are painfully slow with DHB's taking well over a year just to agree to the first meeting. In addition to wage pressures, the sector has had to deal with significant levels of historical under funding, which was highlight by a Government-funded report in 2000.

HealthCare Providers believes the Government needs to accept the problem and provide a measured response when the "Sustainability Report into Aged Care" is released. "This report is meant to measure current demand and model future usage, and then propose viable solutions to ensure the sectors future," he said.

"The Government's Ageing in Place Strategy relies on a robust aged residential care sector which needs to be funded at levels that guarantee the financial viability of providers. Three quarters of people in this sector are hard working Kiwis, community trusts and religious and welfare organizations. Just like the larger groups, they want to see their staff paid more and the sector funded on a sustainable basis," Mr Taylor said. ENDS

© Scoop Media