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Aged Residential Care Bill Sends Wrong Message

Aged Residential Care Bill Sends Wrong Will Reduce Investment & Choice

This month a Bill setting a price cap on what private paying rest home residents can pay will be reported back to Parliament.

The Social Services (Long Term Residential Care) Bill 2006 is the government’s second attempt to establish a price cap on what private residents can pay, based on how much the government is willing to pay for subsidised clients.

“We believe it is entirely appropriate for the government to maintain and support those elderly who are subsidised and to continue with the current asset testing regime. However, it makes no sense establishing a price cap for elderly residents with the means or desire to pay privately – no other sector has this type of regulation”, said Martin Taylor, CEO of HealthCare Providers NZ.

“Aged residential care is a core health service, and just like other health services, such as surgery, the public can choose a government subsidised service, or a private service. The government does not set a price cap for private surgery options, so why should they do this for private aged residential care?” said Mr. Taylor.

Mr. Taylor said, “providers of aged care will see this Bill as just more regulation in an already over regulated sector and react accordingly. This will translate into less investment in the sector, and a move towards running rest homes and hospitals which fall outside the legislation, this is not good for the sector or the country”, said Mr. Taylor.


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