LASA: Aged care requires significant capital

May 13, 2015 | Aged Care Finance

Anyone with a finger in the aged care pie understands the importance of capital – especially if the sector is to meet growing customer demand.

Leading Age Services Australia (LASA) has recently came forth, explaining that around $9 billion in capital is required for residential aged care, and without it Victoria could fall short of delivering the necessary residential aged care places.

By 2031, the state needs an additional 3,570 residential aged care places – and $9 billion is required to meet this target. Looking at particular regions, LASA noted that 2,093 additional places will be needed in Gippsland, 1,652 in the Grampians, 1,944 in Hume and 2,074 in Barwon South West.

CEO of LASA Victoria Trevor Carr explained that further funding will be needed to meet this place demand, far above the $123 million that’s been allocated in the past.

“Historically, over the last decade, the private and not-for-profit residential age care providers have invested heavily, funding 43,862 additional aged care places nationally, while local, state and territory governments have closed 2,768 places,” Mr Carr said.

He went on to explain how any further funding changes unfavourable to aged care could have significant consequences.

It’s well known that aged care providers require will adequate funding over the next few decades, and future budgets will need to meet this demand.

The population of Australia isn’t going to grow younger at any point in the near future and preparation now through more sustainable funding is the best way to deal with this challenge.

What do you think are the biggest opportunities for success in the aged care industry today? Please contact us and let us know!