Aged Care funding and service improvements

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Source: New Zealand Government

A new system for delivering home care services for older people, focusing on restorative care, begins in the South Island today.

“This is one of a series of improvements being made to the current aged care system, backed by a significant increase in funding, to support improved care and the aged care sector,” Associate Health Minister Casey Costello says.

“The aged residential care (ARC) sector has received a 4 per cent funding uplift and will see a total increase of $96 million this year, and funding for home and community support services (HCSS) will increase by $44 million,” Ms Costello says. 

The total funding increase of $140 million this year is on top of an annual increase of $129 million last year and means that government spending on aged care is now more than $2.5 billion.

“The funding increases are aimed at relieving pressure on the sector and improving care services for older New Zealanders while we work towards the longer-term reform needed to better help people age well,” Ms Costello says.

“The reality is the current aged care model is out of date, so we are making improvements in the short term as well as considering system-level change.”

Today’s changes in home care funding and provision see the introduction of a new ‘case mix’ framework and funding model across the South Island to help those people who receive care at home.

“Four providers have been contracted to provide the new model, which is designed to move away from “task-based” care plans where providers are paid by the hour for specific tasks to more flexible care which is responsive to what people need. 

“The new service model will provide better care with a focus on keeping people as independent as long as possible.” 

The case mix framework and funding model will be introduced across the other three Health NZ regions to provide national consistency.

The Minister said that Health NZ was also working with the aged care sector to update the current contract for aged care and to develop a better system for categorising care need.

“The sector has said, and I’ve seen, that people entering residential aged care have higher health needs than before, and some older people need greater care from home services as well as more specialised services, such as bariatric and even palliative care in ARC facilities. 

“I want this process to better categorise this need, and the care people require, which will support the development of an appropriate funding model.”

MIL OSI

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