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Adelaide Faces Financial Implications Of Two-tiered Aged Care System

A two-tiered system in residential aged care appears to be emerging in Adelaide and South Australia, according to a new study.

Today, for-profit providers are seen dominating the major cities, while non-profit providers are positioned in regional and remote locations. According to the Department of Health and Ageing, for profit-providers have grown more than twice the growth of the non-profit providers over the last 10 years. The numbers of aged care beds in commercial sector have increased by 46 per cent too, while the non-profit sector only experienced a slight increase of 19 per cent. What we see here is that Adelaide Faces Financial Implications Of Two-tiered Aged Care System

Although an increasing number of aged care providers is great to have in order to accommodate the growing ageing population, the question is will a two-tiered system deliver the same quality of service? These are the two major points that concerning for future nursing home resident: 1) for-profit providers generally offer lower quality of aged care, and 2) lower quality means more expensive aged care cost. Why is it more expensive? Because you are getting less of what you actually paid for.

Lead researcher Richard Baldwin of University of Technology confirmed and provided a study that for-profit providers offer lower quality of aged care. Also, the commercial sector was proven to have lower nurse to patient ratios. This means they have higher risk of not meeting the minimum quality standards in aged care. And if residents don’t get the level of quality they desire, the tendency is to ask for extra ‘luxury’ services, which will result to higher additional service fee and a more expensive aged care cost.

With all these concerns growing, the government keeps mum about their long-term vision for residential aged care. Although we cannot confirm if the two-tier system is the direction we are going to in aged care, the numbers do not lie. For-profit providers are dominating the market and we need to prepare ourselves for the implications. If you are following Adelaide Aged Care Financial Advisers’ blog, you will know that we are serious about making people’s journey to aged care easy and stress-free.   That’s why we urge you to plan ahead, so you make wise financial choices and afford the kind of aged care service that you deserve.

We are here to help you get started! For a free initial aged care advice consultation, you can call 1300 422 232. 

 

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