Rest homes say aged care funding boost not enough

By ALISON BROWN in Rotorua
Rest home operators in Rotorua and Taupo say a surprise funding boost offered to the district's aged care sector does not go far enough.

This week associate Health Minister Ruth Dyson announced district health boards will get another $18 million, so they can improve the funding increase offered to rest homes and geriatric hospitals from 1 percent to 3 percent.

Ms Dyson hoped the cash would ease pressures on elderly residential services that continued to struggle amid claims of chronic underfunding.

But Ron and Jamie Main, owners of four rest homes, including Cantabria and Fergusson Home in Rotorua, say the funding increase would not cover the rising costs of electricity.

The Ministry of Health is setting up a working party to sort out long-term issues affecting the sector, such as the impact of the Holidays Act, and the effect of the recent pay deal offered to public hospital nurses. The working party will report to the Government early in the New Year.

While the Mains have welcomed efforts to address the issues, Jamie Main is sceptical about what it will achieve.





Their sentiments are shared by others in the sector, who say the increase is not enough to cover their expenses, forcing some to consider cutting services, selling up or shutting their doors altogether.

In the last month, Rotorua couple Paul and Jenny Bradley turned their backs on Glenbrae Lifestyle Estate, the business they built from scratch 15 years ago.

It was sold to corporate health provider Radius Residential Care Ltd, while in Taupo, the Salvation Army announced Wharerangi Home and Hospital was one of 12 aged care homes it was selling.

The outlook is also bleak at Rotorua's dementia care specialist, Whare Aroha, which has lost money for the last five years.

Spokesman David Elliott said the Rotorua Continuing Care Trust had cash reserves to operate for another two years but unless the board gave it more money for services, the facility would have to close.

Frustration among the district's aged care providers has prompted them to form a group, the Lakes Aged Care Providers Action Collective, to lobby the health board for funding increases between 10 percent and 25 percent.

With public hospital nurses and midwives recently offered pay increases of 21 percent, anything less would threaten the ability of rest homes to recruit and retain quality staff, said New Zealand Life Care general manager Lynne Irwin, of Rotorua.

"It's tough finding registered nurses at the moment with the huge disparity between the hourly rates. [The pay offer] is fantastic for nurses but it's put huge pressure on us to match it."

New Zealand Nurses Organisation aged care advocate Shane Vugler said the 3 percent funding increase was "better than nothing". "We're hoping more money will come through next year's budget."