NZACA Welcomes $7 million Increase for Dementia

NZACA Welcomes $7 million Increase for Dementia

NZACA Press Release 24 May 2012

NZACA welcomes the government’s $7 million p.a. increase for dementia care announced today.

The budget announcement of $40 million for dementia is arrived at by adding together, over a four year period, yearly increases along with the additional funding required to cover demand growth.

This represents a 5.8% increase in the daily subsidy rate and taking into inflationary pressures of 1.8% this represents a 4% overall gain for dementia care operators.

The average amount paid for dementia care per day is $149 depending on where you live in New Zealand.

“This is another good increase in the dementia rate and means the underfunding of this service has reduced from about 36% to 20% in the last two years based on the independent 2010 Aged Residential Care Review paid for by the Government,” the Chief Executive of NZACA, Martin Taylor, said today.

“Everyone in the aged-care sector and the health sector understands the demand for dementia care will increase dramatically and that it is one of the hardest services to deliver. As such this increase will be of great assistance to the 150 operators delivering dementia care to 3100 elderly each and every day in New Zealand.”

The independent 2010 Aged Residential Care Review also established the rest home care subsidy was 40% underfunded and the hospital rate 17% underfunded. Unfortunately, these underfunding levels have increased over the last two years as inflationary pressures for these services have not been met.

In 2011, about 3100 people were in dementia care, 11,000 in hospital level care and 16,700 in rest home level care.

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