It is economically sensible; it's not realistic to continue to increase taxpayer outlays for services which could easily be afforded by the recipients who have hundreds of thousands of dollars, in many cases, of assets sitting idle.
It comes down to the political considerations as always.
The coalition government tried to introduce this reform in 1997 and it was howled down; ironically by many who today are it’s greatest champions. The current government knows that this is an option that has to be on the table but is understandably wary of the political minefield it entails.
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However, it should reassess (independent of the ideologues who drive the program) the growing level of support in the community for the concept.
If no substantial change occurs two things will happen:
- the number of aged care providers becoming insolvent (which was at record levels even before the global financial crisis) will continue to rise placing a greater burden on the public health system. It’s unknown if the impact of a very large provider (1000+ beds ) falling over has even been genuinely risk assessed by the health bureaucrats; and
- new, purpose-built single room modern facilities costing approximately $200,000 per bed to construct, simply won't be built. More, older facilities will operate longer and future generations of aged care recipients won't be able to find a place or at least not one which meets their expectations.
It reminds one of the scene from The Untouchables where Sean Connery tells Kevin Costner that everyone knows where the booze is. The problem is who's got the guts to kick the door down and do something about it.
Incidentally, I went to Mary's funeral, as did many members of the facility (residents and staff) in which she lived.
It was a great occasion - lots of tears but also many smiles and the celebration of a wonderful life.
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The funeral was expensively catered - not an onion sandwich in sight.
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