Funding boost for rest homes & dementia care

The National-led Government is increasing the rest home bed subsidy by $10 million a year – a 5 per cent increase – as part of the government's ongoing plan to meet the changing needs of our population.

Health Minister Tony Ryall today announced a $40 million funding boost over the next four years for aged residential care and dementia services. The extra funding was earmarked in Budget 2014.

“We will increase rest home bed subsidies from 1 October by 5 per cent – this equates to an extra $7.5 million for aged care providers this financial year and $10 million extra for subsequent years.

“While it will be up to providers to decide how this extra money is spent, I expect many will choose to use it to increase staff wages.

“The remaining $2.5 million will be one-off funding towards implementation of dementia care pathways across district health boards and communities,” says Mr Ryall.

Associate Minister of Health Jo Goodhew said aged residential care services play an important role in supporting older New Zealanders who can no longer live at home.

“There are around 32,000 residents living in over 600 rest homes across the country, and over 45,000 New Zealanders with dementia living in the community. As our ageing population grows, demand for aged care services will also grow,” says Mrs Goodhew.

“Today’s announcement brings our annual investment in aged residential care to over $985 million and will ensure we continue to provide older New Zealanders with the best possible care in the future.

“Despite tight financial times, which have seen many countries freezing or even reducing funding for health services, the National-led government has increased funding to aged residential care by over $240 million.

“Over the next 20 years the number of New Zealanders over the age of 65 will double to 1.2 million people. This $10 million a year funding boost is part of the government’s ongoing plan to meet the changing needs of our ageing population.”

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