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More aged care beds and staff overdue but welcome - now for more thinking

The AMA welcomes today's acknowledgment by the Coalition that 'more and more aged care places are needed for older Australians throughout the country' and the Government's promise to increase the number of operational aged care places by 30,000 by June 2006.

But AMA Aged Care Spokesman, Dr Gerald Segal, raised some concerns about funding.

"With costing per bed set at $68,500 (Two Year Review of the Aged Care Act) - although the industry sets the real costing at between $100,000 and $120,000 - where will the funding come from?" Dr Segal said.

"Will the Coalition reverse its previous clawback stance announced in this year's budget where it was expected to save more than $71 million by 2004-05?"

Dr Segal said the AMA welcomes the Coalition's policy to increase residential care subsidies by $200 million over four years - although it is noted that this depends on the outcome of a review of the pricing arrangements underpinning the subsidies.

"This foreshadowed increase is the lynchpin for quality care and addressing the staffing crisis," Dr Segal said.

"There is an urgent need to get the funding formula for indexation right.

"This formula includes the component for wage costs. So, without a realistic component for wages other initiatives to encourage nurses and workers in to the industry - although positive - will not succeed.

"The AMA will examine and compare the respective aged care policies of the major parties in detail before the AMA Aged care Summit on 1-2 November.

"Both the major parties must cast an eye to the long term funding of the aged acre sector if solutions to the aged care crisis are to be found. More beds are needed but, without the appropriate funding and support services, they may be ineffective.

"It is time to end the frenzied election bidding war and the short term opportunistic policies on the run and start planning a caring and competent aged care system for future generations of Australians," Dr Segal said.

CONTACT: Dr Gerald Segal, 0418 559 086

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