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Agreement Reached To Develop Aged Care Contracts

4 April 2002

Associate Health Minister Ruth Dyson today welcomed agreement by the Ministry of Health and aged residential care providers to work together to develop nationally consistent contracts by 1 June 2002.

Ms Dyson said that the agreement followed a Cabinet decision last week that the ministry should negotiate nationally consistent contracts for aged residential care, rather than issue a Section 88 notice.

Ms Dyson said the new contracts would include strengthened service quality requirements, nationwide consistency, and more effective administration of aged care services.

“The new contracts will enable older New Zealanders to receive consistent, high quality services wherever they live,” she said.

“It will also benefit providers by reducing price variations for services around the country over time, while still providing some scope to respond to local conditions.”

The Ministry of Health will write to all providers in the next week, outlining the timeframe for developing the contracts. A meeting will be held with provider representatives in April to finalise the contracts, and contract documentation will be sent out to all providers by mid-May.


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