Survey Examines Government Management of Aged Care Sector

A new survey has revealed that New Zealanders have lost confidence in the Government’s ability to support the struggling aged care sector, and have serious concerns for the future and its ability to provide adequate care for the country’s ageing population.

Aged Care Matters commissioned the survey, conducted by Talbot Mills, to canvas New Zealanders’ perceptions of the sector, areas of concern and the capability of political parties to deliver outcomes for the sector. 

The survey indicated resounding pessimism about the future of aged care, with just 22 percent of those surveyed saying they were confident that their loved ones will receive the aged care they deserve in the future. 

Of those surveyed, 65 percent said they were either concerned or very concerned about aged care funding and workforce shortages. When hearing that many in the sector believe it is on the brink of collapse, 74 percent said they were concerned or very concerned.

Chief Executive of Heritage Lifecare, Norah Barlow said that there are obvious indications where improvements need to be made.

“The results clearly show a lack of faith from New Zealanders in the Government’s ability to address a chronic funding and workforce shortage. Given we are in an election year, it is a clear sign that the vast majority of New Zealanders are extremely concerned about these issues and the lack of action to put this situation right.”

The survey comes nearly four months after the Minister of Health’s predecessor promised an ‘immediate’ $40 million towards pay parity for aged care nurses, with struggling aged care providers having to accept a figure of $22 million this month, well short of what was promised.

While the recent contributory payment to reducing the pay disparity was welcome, it falls well short of what is required. Sustainable and committed funding is urgently needed, not only to address immediate issues but also to ensure the capital investment required for future aged care facilities is met. 

Chief Executive of Summerset Group, Scott Scoullar said that there has been slow movement on the issue. 

“The lack of progress with addressing pay parity is disheartening, particularly when the sector has repeatedly brought to the Government’s attention the massive risk of long-term consequences of inaction,” said Scoullar.

“The Government’s failure to fulfil its pay parity promise from last year is clearly wearing thin. It’s frustrating that the government has yet again failed to deliver on a promise to the aged care sector, particularly when the immediate funding boost is merely a drop in the ocean of what’s required to shore up the future of New Zealand’s aged care facilities.”

The survey also revealed insights into the attitude of New Zealanders towards the political parties prioritising care for older people. When asked how strongly they associate each political party with looking after older people, Labour ranked first (33 percent), closely followed one point behind by  New Zealand First. National lagged over five points behind, with only 27 percent strongly associating them with adequate care for older New Zealanders. 

Aged Care Matters have previously warned that without further Government funding, the ongoing closure of aged residential care beds is likely to accelerate. This is caused by the funding squeeze faced by the sector and continued low pay for nursing staff that exacerbate the existing challenges of attracting and retaining staff. Inflationary pressures also result in aged care facilities bearing the weight of increased costs without extra income.

The acute problem of pay disparity struck a chord with New Zealanders, with 72 percent of those surveyed saying they were concerned or very concerned upon learning that aged care nurses are paid  $22,000-$33,000 less per year than their public health counterparts. 

It is estimated that by 2030 an additional 10-12,000 beds will be needed to keep up with demand. Anything less than this added Barlow, has a flow-on effect, placing pressure on the public health system.

“Without sufficient funding, we will continue to see more and more older people who can’t get into  aged care beds taking up beds that will completely overwhelm that general hospital system and considerably extend important surgery and general practitioner waiting times,” said Barlow

“This will have severe flow-on effects on the whole health system which I can’t emphasise enough. The Government must take urgent action to prevent such a crisis. The introduction of a sustainable funding model for the sector is imperative to ensure New  Zealand’s ageing population can access adequate aged care in years to come.”

The survey found that New Zealanders were most concerned about the sector’s unsustainable funding model, with 74 percent concerned. Other high areas of concern within the sector were the more than 1,000 nurse vacancies and the more than 1,200 aged care bed closures last year. 

With the impacts of February’s cyclone exacerbating existing staff shortages, care providers have banded together to bear the brunt, supporting isolated care providers already dealing with chronic underfunding.

CEO of Metlifecare, Earl Gasparich said that the sector is committed to getting this matter resolved, to prevent workers from continuing to bear the brunt of cost increases.

“Care providers have found strength in uniting to help each other out where possible. Even in the past month, there have been some incredible examples of aged care providers in flood-stricken regions working together to ensure the people in our care and our staff are safe,” said Gasparich.

“The Government are relying on our goodwill and the 1,200-bed closures and counting, enough to fill every bed and more in Auckland City Hospital, shows that this is not sustainable.”

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