Source: Aged Care Association
The Aged Care Association says the closure of Enliven’s Reevedon Rest Home in Levin reflects the cumulative impact of years of underinvestment and delayed reform in aged residential care, with older New Zealanders and their families increasingly carrying the consequences.
“This is not a surprise. It is the predictable result of a system that has been under sustained pressure for many years,” said Hon. Tracey Martin, Chief Executive of the Aged Care Association.
“For more than a decade, successive governments have been warned that the funding model does not reflect the true cost of care. Multiple reviews have identified the same issues, yet meaningful reform has continued to be delayed.”
Reevedon is a 40-bed rest home made up entirely of standard rooms, the type of care relied upon by older New Zealanders living on superannuation alone.
“These are exactly the beds New Zealand cannot afford to lose,” Tracey Martin said.
“Standard room care is essential for older people who do not have the financial ability to pay premium accommodation charges, and yet these are increasingly the beds under the greatest pressure.”
Families and communities increasingly carrying the pressure
The Association says the impact of long-term system pressure is now being felt directly by older New Zealanders, their families, and local communities.
“When homes like Reevedon close, the pressure does not disappear. It shifts elsewhere,” Tracey Martin said.
“It shifts onto families trying to find suitable care, onto hospitals struggling with discharge delays, onto primary care services, and onto communities trying to support older people with increasingly limited options.”
“For too long there has been an assumption that the system would continue to absorb this pressure. That assumption is no longer holding.”
Aged care is health care
The Association says the closure reinforces the need for aged residential care to be recognised as core health infrastructure.
“Aged care is not separate from the health system. It is a fundamental part of it,” Tracey Martin said.
“If aged care capacity reduces, the consequences are felt across the entire health system.”
“When older people cannot access the right care at the right time, the pressure inevitably shows up elsewhere, particularly in hospitals and on families already under strain.”
Funding settings no longer match reality
The Association says the current funding model is increasingly disconnected from the realities of modern aged residential care.
“Residents are entering care later in life, with significantly more complex clinical and care needs than in the past,” Tracey Martin said.
“At the same time, the costs of delivering safe, high-quality care have continued to rise, while funding has not kept pace with those changes.”
“There is also very limited ability within the current model for providers to reinvest in ageing infrastructure and facilities. Over time, even well-run homes come under increasing pressure.”
Need for reform now urgent
The Association says the closure highlights the urgent need to move from discussion to implementation.
“We are well past the point of identifying the problem. The sector, government, and the wider health system all understand the pressures that exist,” Tracey Martin said.
“What is needed now is practical reform that stabilises the system and supports long-term sustainability.”
The Aged Care Association is calling for progress on a three-stage reform programme:
1. Stabilise the system
- Establish an aged care infrastructure investment fund
- Introduce an admission and discharge payment
“These are practical measures that could help prevent further loss of capacity in the short term,” Tracey Martin said.
2. Sustain the system through fair funding
- Move to evidence-based funding for clinical care
- Implement a split funding model to improve transparency for residents and families
“New Zealanders deserve transparency around what the health system funds and what individuals are expected to contribute themselves.”
3. Make the system investable
- Agree a sustainable operating margin
“Without the ability to reinvest in facilities and infrastructure, closures like this will continue over time.”
A warning sign for the future
The Association says Reevedon is unlikely to be the last service closure unless meaningful reform occurs.
“This is not an isolated issue. Providers across the country are facing similar pressures,” Tracey Martin said.
“If we continue to lose standard room capacity, older New Zealanders and their families will increasingly find that access to care depends not on need, but on ability to pay.”
Closing
“This is ultimately about what kind of country New Zealand wants to be as our population ages,” Tracey Martin said.
“We can either act now to strengthen and modernise the system, or we can continue to allow pressure to build until families and communities are left carrying more and more of the burden themselves.”
“Older New Zealanders deserve certainty that care will be available when they need it. Increasingly, that certainty is being eroded.”