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Funding crisis

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Not-for-profit aged care facilities in the region are in a funding crisis.

Revealing this to The [Naracoorte Community] News, CEO of Naracoorte’s Longridge Aged Care, Mary-Ann Koerner, said this was the most pressing issue facing the state and federal governments, needing immediate solutions.

Ms Koerner said the issue was even over and above health in general, with facilities full to capacity, a lack of staff to look after the elderly, and improper state funding.

“The Federal government has committed to a 15 per cent pay rise for direct care workers and senior food employees come June 30 this year. Not only is this inequitable, but it is impossible for Longridge to fund,” she claimed.

Ms Koerner said the government had initially said it would fund the 15 per cent but was now committing to fund only 10 per cent, with the remainder to be funded by the organisations themselves.

“On top of this, the CPI currently sits at 7.3 per cent, and Longridge also pays “above award”. When you add all of this together, senior management (especially finance) and the Board of Governance are deeply concerned about the future of our financial status. Please note—we absolutely agree that workers should receive a 15 per cent pay rise and that it is long overdue—but it needs to be funded,” she said.

Ms Koerner said adding to the crisis was the shortage of registered nurses.

“We are currently at full capacity (52 rooms), and we have people waiting for permanent and respite vacancies.

“There is a national shortage of registered nurses (RNs). The government has mandated 215 care minutes per day per person every day, and 40 minutes of this is RN time, and because of this, Longridge currently needs approximately four more RNs to fulfil this mandatory requirement.

“Carers and ENs make up the remainder of 215 minutes, and we are fortunate to have a quota of staff to fulfil these requirements.

“We believe it will be impossible to meet the government deadlines for the new standards in the sector come October 1, 2023; the pressure is enormous.”

She said the industry would need more capacity in the future as “baby boomers” started to enter the system.

“The governments have promoted and provided packages for people to remain in their own homes as long as possible.

“What we know is that many people need more help to maintain their independence (identity), and that is where Longridge comes in. Regardless of the number of packages available, there will always be a need for residential care, and considering the flood of baby boomers, I would expect that the need will increase.”

Ms Koerner said throughout 2020 and up until late last year, they had rooms available.

“This trend was primarily based upon the Covid-19 pandemic and the inconvenience it caused people living here, including the lockdown restrictions.

“Lockdowns had a negative effect upon people and their families, and particularly upon their mental health. Aged care homes already have a negative reputation, and the Covid-19 restrictions did not help this perception.”

She said if there was going to be any need for growth in the aged care industry in the future in the region, organisations like Longridge needed to work with the local council to achieve this. “Not-for-profit organisations like Longridge will probably grow in size to cater for this in the future.”

Naracoorte Community News 26 April 2023

This article appeared in the Naracoorte Community News.

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