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Evidence of the Struggle in the Aged Care Sector

21 January 2005

Further Evidence of the Struggle in the Aged Care Sector

The recent announcement that another Religious and Welfare provider - Methodist Mission Northern - is facing a massive deficit is just another example of a provider struggling to maintain residential services for the elderly. The fact that another provider is in this position does not surprise the New Zealand Private Hospitals Association (NZPHA).

Carolyn Cooper Executive Director of NZPHA says “this is another graphic example of a quality caring provider, who has been delivering services to our older people for years, reporting a significant deficit of $600,000 despite undertaking a major restructuring exercise.”

“The continued massive shortfall in funding for aged residential care is hitting not for profit providers first as they do not often have other business interests to cross subsidise their services with”, says Ms Cooper.

“Sadly our older people are not seen as a priority by this government and as the funding to the aged residential care sector further erodes you will see more examples of providers who cannot afford to stay in business”, she said.

“We are working with the Government and DHB’s to look at the situation more closely, however, a sustainable funding pathway must be put in place quickly to ensure that the current crisis does not affect the care of our older people,” Ms Cooper say.

Ends…

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