Positive Moves in Addressing Elderly Funding

Media Release

20 December 2004

Government Makes Positive Moves in Addressing Elderly Funding Crisis

Residential Care New Zealand welcomed the news that the government has given an extra $18 million to aged care funding so that DHBs can offer the sector a 3% increases instead of 1%.

“It’s good that the government has accepted that there is a crisis in residential care funding and Hon Dyson has shown leadership and fairness in addressing the issue”, said Martin Taylor CEO of Residential Care NZ.

“In reality the 3% means we are in the same position now as we were last Christmas taking into account inflation”, said Martin Taylor CEO of Residential Care NZ.

RCNZ also welcome the establishment of a working group to find a sustainable funding formula for the future.

“I hope that by working together with the government that we can achieve an outcome that will provide a sustainable funding basis for everyone in the sector, the elderly, care givers, nurses and providers”, said Martin Taylor CEO of Residential Care NZ.

“I have to say many of my members are concerned that the working group may not solve the funding problem based on their last experience in 2000 when the Ministry of Health ignored their own $500,000 Price Waterhouse Coopers report because it concluded that the sector was underfunded by over 20%. However, RCNZ is committed to supporting the Working Group at this stage” said Martin Taylor CEO of Residential Care NZ.

ENDS

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