The leadership test aged care can’t afford to fail
3 minute read
On his first day in the job last May, we sent Minister Rae an open letter. We warned that urgent action was needed in his portfolio. Support at Home wasn’t ready: the rules were still in draft, the IT system was missing, workforce planning was underdone and transition funding was inadequate.
Fast forward three months and with less than two months to the start date, three separate reports confirm that little has improved. Not much is ready to go and the implementation issues are mounting.
A sector stalled
The Inspector-General of Aged Care’s scorecard on progress since the Royal Commission was released last week. “Progress” is a word you could use, but only if paired with terms like “stalled” and “underwhelming”. The report makes clear that the Act still needs to be finalised, the rules locked in and the workforce strategy lifted beyond wishful thinking.
The second report, from the UTS Ageing Research Collaborative, warned that home care viability is declining in the lead-up to the new Support at Home program. Pricing is now at flashpoint with 40% of providers already operating in deficit.
The third, StewartBrown’s August survey, showed that with just eight weeks to go, 80% of providers still might to change their prices. It also found that providers need to increase service revenue by up to 38% simply to remain viable. This is the direct result of care management caps being imposed and package management fees being removed.
Implementation risks mounting
IT readiness is another major concern. At this stage, it looks unlikely that the new systems will undergo a proper test before go-live. Perhaps there will be a pleasant surprise, but more likely providers will be told to flip the switch and hope payments flow, creating a whole new wave of provider grief.
With the shift to payment in arrears, cashflow will be a major next stress point. Larger providers may weather delayed payments; smaller ones risk being unable to cover staff costs while waiting on reimbursement. For a sector already running on thin margins, this is a very serious risk.
With so little real reform progress, it is no wonder that the home care waitlist grew from 87,000 in March to 108,000 in July, with a staggering 121,000 older Australians still waiting to be assessed!
Providers have been raising these concerns for months. The difference now is that the same warnings are appearing in official reports and government data, not just in provider forums.
What needs to happen now
So much still needs to be done. But right now, there are a few fundamentals that simply cannot wait. Providers are not asking for miracles or special treatment, just the basics they need to deliver safe, reliable care and prepare for the transition ahead. Unless these urgent steps are taken, the success of the reforms, and the confidence of older Australians, will be put at risk.
Finalise the rules. Release them now so providers can sign agreements and prepare properly. Leaving this until the last minute is untenable.
Test the systems properly. Run the systems before go-live. Testing must not become another excuse for delay; it needs to ensure providers can operate with confidence.
Fund real readiness. Stop expecting providers to fold transition costs into service prices. This confuses consumers and undermines trust. Transition support must be properly resourced.
Lift the cap on care management. A 10% cap is not workable. If quality and safety are genuine priorities, government must fund the real cost of planning and coordination rather than forcing cross-subsidisation from service delivery.
The leadership test ahead
The government’s aged care reforms have been unacceptably slow, leaving providers stretched, workers burning out and older people waiting far too long for care. The time for delay is over. This is a test of leadership and failure to act will mean more Australians will miss out on the care they deserve.
Our new Minister must step up now, honour the commitments already made, finish the reforms his government started and deliver meaningful change. Anything less is a betrayal of older Australians and the services that support them.
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