Western Bay providers can start planning extra dementia care services after the Budget delivered a welcome funding boost yesterday.
An additional $44 million is going into dementia care over the next four years - $40 million for residential services and $4 million extra for full-time carers of people with dementia, including
in-home respite.
Minister of Health Tony Ryall - the MP for Bay of Plenty - said the new funding would provide about 200 extra beds over the next years.
"Many people with dementia are able to be cared for at home, but the demand for residential dementia care is also growing across the country," he said.
Mr Ryall said in addition district health boards would provide an extra $60 million over four years for all aged-care residential services - an increase of 1.7 per cent.
The dementia facilities at Tauranga's five providers - Althorp Private Hospital, Matua Lifecare, Cedar Manor Care Home, Killarney Resthome and Melrose Lifestyle Care - are normally at full capacity.
Althorp even reduced its number of dementia beds, in favour of psychogeriatrics, because of the costs and shortfall in external funding.
Althorp chief executive Thomas Scott said dementia was the most under-funded sector of aged care.
"There is a shortage of beds around the country, and the extra funding is fabulous news. It will close the gap (in costs) and help maintain standards of care."
The New Zealand Aged Care Association (NZACA) has calculated the additional funding will create a 7 per cent increase in the subsidy paid to providers looking after elderly dementia residents. It helped close the 40 per cent funding gap for dementia care in the country.
Mr Scott said his organisation would look at increasing the wage from $14 to $15 an hour to maintain quality staffing levels for safe dementia care.
"We don't want the compromise situations where people are unnecessarily sedated, wherever they are, because they can't access safe care. That's the risk and it's quite inappropriate," he said.
Mr Scott said Althorp was paid a subsidy of $130 a day per patient and that didn't cover the capital cost of extending and providing new dementia beds.
NZACA said the average occupancy was 95.4 per cent.
Health was the biggest winner in the latest Budget. Public health services are receiving an extra $2.2 billion over the next four years, including an additional $585 million for 2011/12.
This amount is made up of $420 million of new money and $165 million savings going back into healthcare.
Over the next four years, there is $68 million for more elective surgery - creating an extra 4000 operations a year and reducing waiting times.
A further $54.5 million is being spent on maternity initiatives to improve safety, quality and extra WellChild visits, with a focus on first time mothers.
Another $18 million is going into 40 extra medical training places, and $80 million for increased access to medicines, with 32,000 patients benefiting in the fist year.
Mental health gets an additional $40 million, disability support services $130 million to meet rising needs and costs, and district health boards will pay an extra $80 million for GP visit subsidies.
Western Bay providers can start planning extra dementia care services after the Budget delivered a welcome funding boost yesterday.
An additional $44 million is going into dementia care over the next four years - $40 million for residential services and $4 million extra for full-time carers of people with dementia, including
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