Australia Faces Looming Aged Care Crisis as Workforce Shortages Force Closures
A new study by a coalition of academics has revealed that Australia is on track to face a critical shortage of aged care workers by 2033, with a projected shortfall of 16,000 nurses and 25,000 allied health professionals. This alarming trend is already taking its toll, as a further 16 aged care facilities have been forced to close their doors between June and October this year, primarily due to staffing shortages exacerbated by Labor’s stringent nursing reforms.
These closures have resulted in a net loss of aged care places, with only 505 new places opening up compared to 830 lost over the past four months. This situation is particularly concerning as Australia’s population ages, placing increasing demand on government-funded aged care services.
The Albanese government’s latest intergenerational report projects that life expectancy will continue to rise, further straining the aged care sector. Since September last year, at least 47 aged care homes have shut down, according to figures from the Department of Health and Aged Care. This trend is attributed to a combination of factors, including Labor’s staffing reforms, which mandate 24/7 registered nurses and minimum care requirements, as well as financial pressures facing the sector.
Last week, Southern Cross Care NSW & ACT announced the closure of its 56-bed Moama residential aged care facility due to staffing challenges, citing Labor’s new reforms as placing “further pressure on providers to maintain their workforces”.
Independent aged care expert Paul Sadler warned that further closures are likely as the sector grapples with a combination of financial pressures and workforce shortages. “About 16 closures across four months is higher than it has been historically,” Mr Sadler told The Australian.
The sector is currently implementing a suite of reforms, including mandated minutes of care per resident, quality and safety standards, and full-time nursing requirements. These reforms come as the sector adjusts to a new funding model introduced last October in response to the recommendations of the aged care royal commission.
The overhaul is taking place amidst financial troubles within the sector. Figures from the Quarterly Financial Snapshot of the Aged Care Sector reveal that 66% of private providers are operating at a loss, with homes losing an average of $28 per resident each day.
Terry Haines, chairman of the Australian Council of Deans of Health Sciences, called on the Albanese government to urgently address the impending workforce crisis. He warned that without adequate nursing staff and allied health professionals, Australians would receive poor quality care, and elderly people would be forced into the hospital system for low acuity illnesses that could be treated at home.
Haines also emphasized the need to address the shortage of allied health staff, such as speech pathologists, physios, and occupational therapists, which he believes has been neglected by the government.
Minister for Aged Care Anika Wells acknowledged the workforce crisis but defended the government’s actions, pointing to the historic $11.3 billion investment in a 15% wage rise for aged care workers, which is expected to attract more than 10,000 new workers to the sector in 2023-24.
However, audit firm Grant Thornton’s national head of health and aged care, Darrell Price, expressed concerns about the projected shortfall in aged care staff, which he attributed to a global shortage of nurses. He also criticized the government’s staffing reforms, arguing that they are counter-productive and placing Australia at a disadvantage compared to other countries, such as Canada and the UK, which are easing regulations to attract more healthcare workers.
Price stated, “Canada has completely relaxed their immigration rules around targeted professions where they are incentivising nurses into aged care as well as rolling back red tape whereas in Australia we are increasing regulation.”
The looming aged care crisis highlights the urgent need for the government to implement effective strategies to address the workforce shortage and ensure that Australians receive quality care as they age.