RLC says retirement living can play a key role in home care reform

The Retirement Living Council (RLC) renewed its push for the Federal Government to recognise the role retirement living communities play in supporting older Australians, calling for a funding injection that would enable them to provide home care services directly to residents. 

Key points 

• The number of Australians over the age of 75 is set to increase by 70% over the next 15 years, totalling 3.4 million people by 2040
• Government spending on aged care continues to rise and is expected to reach $35.8 billion by 2025-26; previous modelling by RLC suggests additional retirement living funding can save the Government up to $1 billion annually
• They believe a “Shared Care” framework can keep older Australians out of residential care for longer while giving them faster access to home care services and better care outcomes 

Ahead of the impending May Budget release, an RLC submission to Government says a “Shared Care” framework would be the perfect opportunity to alleviate some of the stress aged care is under. 

RLC Executive Director Daniel Gannon said retirement living communities can provide home care services to support their residents to live healthy, independent lives for longer. 

“When we look around the country right now, there are two million people over the age of 75. This cohort grows to 3.4 million by 2040. As a direct result of Australia’s silver tsunami that is rapidly approaching, there will be impacts on housing, health and aged care,” Mr Gannon said.

“We can’t address the aged care crisis by simply throwing more and more taxpayer-funded dollars at it. The privately funded retirement living sector is ready and willing to play its part.”

“Retirement communities can deliver better outcomes, they can deliver better experiences and better value for older Australians who need access to care. There are incredible benefits for Government, too,” he added. 

RLC’s key recommendations

There are five key recommendations in RLC’s May Federal Budget submission, which are:

1. Include retirement communities as a key delivery component of achieving the Housing Australia Future Fund target to build 1.2 million new homes nationwide by 2029
2. Implement the RLC’s Shared Care proposal […] demonstrating that significant efficiencies and savings to consumers and Government can be achieved through a strengthened Home Care delivery framework
3. Remove incoming purchase price benchmarks for Australians living in retirement communities to allow deeper access to Commonwealth Rental Assistance
4. Amend existing inconsistencies to allow Australians living in retirement communities to access the Home Equity Access Scheme
5. Exempt a portion of home sale proceeds for the age pension asset test to reduce the financial disincentive for those considering ‘rightsizing’ while ensuring the security of their pension long term

The RLC’s submission is built on a report titled Shared Care: Delivering greater home care efficiencies for consumers, providers and government which is currently a member-only report for those interested in viewing it in full. 

The report says preliminary estimates indicate a shared care model where retirement living providers provide a sub-set of services alongside an external provider who is responsible for other services would achieve significant efficiencies for the Support at Home program.

In addition, a comprehensive model of care where retirement villages have a duty for all services provided, including clinical and medical support, would achieve the same positive outcomes. Retirement Living providers would be funded to provide this care. 

Mr Gannon said this approach would deliver greater efficiencies for consumers, providers and Government, including by reducing the amount of time consumers have to wait for home care services. 

“More than one million Australians currently utilise home care services, ranging from transport to personal care. Some of these people are waiting for up to a year to access home care funding, and sadly a third of this funding is lost to administration fees before it can be used,” he said.

“This report paves a path for Government to make the delivery of home care almost 20 per cent more efficient, meaning that older Australians would receive more care per dollar invested. These efficiencies would ultimately save the commonwealth up to $100 million per year, which is a win-win for consumers and Government alike.” 

Predicted efficiencies include reduced travel time for staff, reduced administrative tasks, optimised rosters and shift lengths and more efficient care per every dollar spent by consumers. 

There would also be a reduced need for external referrals and fewer interactions with the health system, including fewer emergency room presentations. 

“Care is everyone’s responsibility but we are urging the Australian Government to put these reforms in as quickly as possible to make sure that older Australians are getting the care that they need, the care that they deserve and as quickly as possible,” Mr Gannon added.