We Agree, Now Let's Act

I’ve taken a read of the just released Sapere Aged Care Funding and Service Models Review. I welcome the Sapere Report, it is document that backs the calls of the New Zealand Aged Care Association (NZACA) and the needs of the industry.??

Before I provide deeper thoughts, I need everyone to remember that this document talks about caring for people. Residential aged care provides 24-hour, hospital level care to people’s mums, dads, friends and families. Let’s not lose sight of that as we review this reports’ findings.???

Increase funding??

I’m delighted to see that this report (pages 47 to 61) identifies one of our industry’s largest issues. It is in agreement with Radius Care, and the wider aged care providing community, that the current system is underfunded and in need of a serious overhaul to meet the demands of our nation’s aging population.???

Page 47 sums things up nicely, "Current care prices only enable ARC providers to cover their operating costs and are not sufficient to cover capital costs or to support significant new investment." It also states, “Regulated care prices are too low to incentivise investment in new facilities or to secure the workforce needed to staff current beds."??

Financially unsustainable??

It is obvious that underfunding has led to closures. A little desktop research will show the sector losing 1,085 beds and 24 care homes nationwide since 2017.???

The report also says, "The funding models used to distribute funding to the sector are no longer fit for purpose. We do not consider the current funding models for ARC and HCSS are delivering value for money or likely to be delivering the best results for both providers and older New Zealanders." (Page 62)?

He Tāngata, He Tāngata, He Tāngata?

The report is also in agreement that workforce challenges are reducing the care that Kiwis are getting in aged care. It similarly deems that pay disparities and an over reliance on immigrant workers are hampering the sector’s ability to provide adequate care. I couldn’t agree more.??

"The aged care sector’s inability to attract and retain skilled workers is a major – and longstanding – issue... The difficulties faced by providers are inextricably linked to inadequate funding and regulated prices." (Page 86)?

"The aged care sector has been historically reliant on immigrant workers, with estimates that 40 percent of care and support workers in the sector are on visas." (Page 87)?

We’re locked into a battle with larger, more wealthy nations hoovering up our top medical talent. That means that we need to do the same with nations like India and the Philippines. We train them up in aged care, they get enough experience to move directly to Health New Zealand, and in turn they train them enough to move overseas. I’m pleased that we can all agree this rinse and repeat model is unsustainable and does not give people good or adequate healthcare.??

Out in the regions?

The report points out that "the challenges facing the aged care sector are exacerbated in rural and provincial areas." We understand this too well, given our 23 care homes throughout New Zealand. The report correctly indicates that capacity constraints in regional and rural facilities, especially for dementia and psychogeriatric facilities is an issue. If you’re not in a city centre, you may find yourself drive for well over an hour just to see mum or dad. We don’t consider that scenario adequate care. Sadly, the report says it’s likely to intensify as the trend for younger workforce migration to urban areas continues (Page 92).?

Work with us?

We’re happy that this report backs what Radius Care and the NZACA have advocated for years. The report, on balance, is reasonable and tells our story. However, I will mention one omission. The Sapere report makes no note of the collaborative approach to fixing the funding level and funding distribution models we have asked for. As an industry we want to work with the government to deliver better healthcare to Kiwis. Fixing this sector, and helping people age with dignity, will be easier if the government works with providers like Radius Care. Let’s take the next steps and help aging New Zealanders together.?