District Health Boards hoarding aged care provider funding

29th May 2012

District Health Boards hoarding aged care provider funding

The Public Service Association and the New Zealand Home Health Association say it’s disappointing to see some District Health Boards refusing to pass on annual adjustment increases to home support providers, in light of the Human Rights Commission report into aged care.

The Human Rights Commission Inquiry into Equal Employment Opportunities in the aged care sector says carers are grossly undervalued and has highlighted serious issues of underfunding, low pay, and pay inequity.

District Health Boards receive an annual increase from the government to cover the normal cost pressures that they and contracting health providers incur.

NZHHA Chief Executive Julie Haggie says last year, five out of the 21 DHBs kept the money themselves and the Northland DHB has just advised that it won’t be passing any of its Contribution to Cost Pressure increase on to providers for the third year in a row.

“That means Northland providers have had no adjustment in rate since 2009 yet during that time they have faced big cost increases such as Kiwisaver, ACC levies and increases to the minimum wage. All this affects how much they can pay carers.”

She says “while residential aged care providers can negotiate a national rate, rates for home support and other community providers vary across DHBs. There is a 26% difference between the highest rate and the lowest rate, and in the very lowest paying areas like Whanganui, Northland, Hawkes Bay and Mid Central, providers have had to cut training and supervision just to meet increased costs. This isn’t a sector where there are huge profit margins and providers run on the smell of a not very oily rag.”

PSA National Secretary Richard Wagstaff says by not passing on the annual adjustment, DHBs are reflecting the lack of wider government commitment towards both the aged care and disability sectors.

“It’s disappointing to hear the government respond to this report by continuing to say it cannot afford to properly fund what is a chronically underfunded sector and bring pay rates up, yet it can give high income earners millions of dollars in tax cuts. It’s about choices.”

“People deserve to be paid for the skill, complexity and responsibility of the work they do, and funding levels must reflect that. For the government not to act on this report would be irresponsible and will continue the historical injustices of pay inequity and low pay for thousands of workers,” Mr Wagstaff says.

In the interests of support workers and the elderly, the NZHHA and the PSA are calling on the Government, DHBs, funders, providers and all unions in the sector to face up to the challenges of the HRC report and take urgent action on its recommendations.

ENDS

© Scoop Media