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Aged Care Funding Crisis Continues

Aged Care Funding Crisis Continues

Press Release

21 January 2005

Methodist Mission Northern Moves Away From Running Rest Homes another Signal to the Government of Crisis in Elderly Funding

The move by the Methodist Mission Northern to consider selling the operation of its rest homes in Auckland as going concerns is another example of the crisis in elderly funding.

The crisis in elderly funding has forced the Methodist Mission Northern into this position. Despite working hard at restructuring their operations they are still making a loss.

"The reality is that funding for aged residential care facilities is critically low and getting worse. Providers have had to handle a 2% increase in wage costs due to the Holidays Act and will soon be facing large increases in costs due to the Nurses pay settlement.", says Martin Taylor CEO of Residential Care New Zealand

This latest move by the Methodist Mission follows closely the decision by the Salvation Army to leave the sector, which in itself followed the closure of rest homes and hospitals in Dunedin and Christchurch.

"I just hope that the Working Party on aged care funding established in December recommends an outcome that will provides a sustainable funding basis for the sector, otherwise the crisis will continue and become worse and that would be unfair to everyone, the elderly, their families and providers", said Martin Taylor CEO of Residential Care NZ.

Ends

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