Elderly people coming into aged-care centres could be slugged an extra $1000 at an emotionally critical time after the federal government decided to scrap a key funding source.
Doutta Galla Aged Services, a not-for-profit community aged-care provider with centres at Footscray and Yarraville, will lose about $185,000 a year after the axeing of the “pre-entry leave subsidy funds”.
The subsidies are used to help aged-care providers hold beds for up to seven days while incoming residents settle their other affairs.
Funding for the subsidy is expected to be cut in July.
Doutta Galla Aged Services chairman Bruce Mildenhall said he was outraged by a decision he said would hurt elderly people living in the west.
“The subsidy gave new residents peace of mind at a time of significant change, and provided them with adequate time to make arrangements, pack up their belongings and get them in order before making the emotional move into permanent residential aged care,” Mr Mildenhall said.
“It enabled aged-care providers to hold a bed for new residents without financial stress to either resident or provider.”
Without the subsidy, residents will need to pay $1000 for the seven-day holding period.
Mr Mildenhall said the decision would put stress on older people already dealing with an emotional and challenging situation.
“Residential aged-care providers are reeling from the cuts by this government. In July, we received the news about the cutting of the dementia and severe behaviour supplement, which stripped $800,000 from our budget, and now the pre-entry leave subsidy. This is now close to $1 million that has been callously ripped from our budget,” he said.
“What should we expect next?”
Assistant Social Services Minister Mitch Fifield said the funding cut would ensure aged- care funds only subsidised people who had actually entered permanent residential care.
“Aged-care providers can still keep places on hold for people … they are still able to charge the incoming resident a fee [about $47 a day],” Senator Fifield said.
