Increased Funding For Dementia Care

Released 19/05/2011 2:44pm (1 year ago)
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Increased Funding For Dementia Care

The New Zealand Aged Care Association (NZACA) welcomed today's budget announcement of an additional $44 million over four years for dementia care. 

This will allow for a 7% plus increase in the subsidy paid to providers who look after New Zealand's elderly dementia residents.

"This is great news from the government and is a good start to bridging the 40% funding gap for dementia care identified by the collaborative DHB and NZACA Aged Residential Care Service Review of 2010," said Martin Taylor CEO of NZACA

The 2010 Aged Residential Care Service Review found that in order to build modern, dementia care facilities, the government subsidy would need to increase by 40%, or about $57 million per year.

The review also found that to build modern rest home and hospital beds, an increase in the government subsidy of 40% and 17% respectively would be required.

"Aged care providers understand that economic times are tough and are very pleased with today's increase.  However, the fact remains if kiwis want modern facilities built to meet future demand then the government must fundamentally change policy settings around income and asset testing in order to release more money for increased funding.” 

For more information call Martin Taylor, CEO, 0274535348

New Zealand Aged Care Association

New Zealand Dementia Bed Profile

How many dementia beds are there in New Zealand?

Of the 35,000 aged residential care beds in New Zealand 2,639[1] are dementia beds.

What is the occupancy level of these beds?

While the average occupancy is 95.4% many DHBs are close to 100% occupancy.

What is the future demand for dementia level care?

Projections from the Aged Residential Care Service Review[2] predict demand for dementia services will increase by 160% between 2008 and 2026. This means an additional 250 dementia beds will be required every year between 2008 and 2026 to meet projected demand.

How much does it cost to build a dementia bed to modern standards?

The Aged Residential Care Service Review established the cost of building a dementia bed was about $180,000. 

What investment will be required by the private sector to ensure there are enough dementia beds to meet future demand?

Based on a build price of $180,000, the private sector will need to find $45 million each year for the next 15 years to ensure an adequate supply of dementia beds.

What is the daily government subsidy rate for dementia level care?

As at 1 October 2010, daily subsidy paid to ARC providers varied from $125.97 per resident per day (GST exclusive) in the South Waikato, Waitaki, Clutha and Gore Districts, to $136.68 per resident per day (GST exclusive) in Auckland City.  The difference in subsidy rate is tied to the capital costs of building in different locations, i.e., the land prices in Gore are lower than the land prices in central Auckland.

[1] Information from OIA of 21 DHBs (February 2010).

[2] http://www.grantthornton.co.nz/aged-residential-care-service-review.html

CONTACT:

NZ Aged Care Association
Ph: +64(27)4535348
Email: martin@nzaca.org.nz

View all NZ Aged Care Association releases at: http://spinitwide.com/latest-releases/nz-aged-care-association

Distributed by http://spinitwide.com on behalf of NZ Aged Care Association