Selling off aged care

Very few of us wish to dwell on how the last years of our life might play out. If we did, we would surely pay more attention to the increasing privatisation of aged-care services.  Do we really want our end-of-life experience to be defined by market forces?  Should the desire for profit underpin the care of those who can no longer care for themselves?...

This columnist is of the view that caring for people at the end of life is a community responsibility and should not be abrogated to those who seek to make private profit from the vulnerabilities of frail older people. We are all dependent on others for care at various times during our lives - as infants and children for example. Or when we are ill - and almost always when we are old and frail.

So what is the impact of the increasing privatisation of aged-care services in Australia? Some things are clear. Firstly, aged care, in spite of the rhetoric about inadequate funding, is seen as a cash cow for private business – including the large corporations. How else to explain why entities such as Macquarie Bank, ING, Westpac AMP and the Development Corporation of Australia are buying into aged care big time?

The view that government subsidies equals heaps of money is symbolised by the now notorious Gold Coast would-be aged-care provider when he commented, "I hit the jackpot with my block of land at Merrimac on the Gold Coast, receiving an allocation of 94 places from the Government." Yep, he got a $3.7 million gift, courtesy of the taxpayers. 

Secondly, economies of scale are becoming the order of the day. Corporations are setting up huge aged-care homes on cheap land on the fringes of our cities. Some have more than 100 beds.

These facilities are usually well-appointed, pleasant, purpose-built places and a far cry from the dreary little cottage-industry homes that used to prevail. But what about the care? Economies of scale generally means economies of staff – as staffing costs take up by far the highest proportion of the aged-care budget.

One staff member who was interviewed on Queensland ABC radio opinied that staffing is now much worse than it was in the 70’s. And we are learning about facilities where only two carers are rostered on at night – while they care for 100 residents. The bleakness of that scenario should send shivers down all our spines.

Thirdly, cutting down on the expensive staff budget often means fewer skilled staff. Take, for example, the facilities where trained nurses are now being asked to reapply for their jobs – but as lower paid personal care workers.

And this is occurring at a time when the high care needs of residents have never been greater.   More shivers down the spine.

Finally, what do these massive changes in aged care mean for those who work within the sector? ABC television (Four Corners) broadcast this week a chilling expose on the pressures applied by Telstra on its staff.

Staff working in aged care are also feeling this pressure. Good hearted people, wishing to take pride in their work, have no time to attend to the needs of residents – let alone talk to them. Often, the most dedicated nurses find the forced neglect of residents so disturbing that they leave to find less stressful, and more satisfying, employment. They are replaced by those who are more able to accept, and accommodate, the consequences of the most minimal staffing. Those flash facilities can be very lonely places for both staff and residents.

So who are the individuals behind the companies? Presumably, they are people who believe they are immortal – or that they will suddenly drop dead and thus will never grow old, frail or experience dementia. How else to explain? Or perhaps such individuals shield themselves from what they do behind a façade of business jargon and by operating in a shadowy, complex network of boards and entities – well away from the messy business of actually caring for people who are dying.

Failures are seldom acknowledged and so we have some people, who have been involved with facilities that have significantly failed aged-care standards, and yet are now out there running other places. That is clear from reading the transcripts of the May Senate Estimates Committee meetings.

Who then should be held accountable when neglect and abuse occurs - the board of directors, the facility manager – or perhaps the director of nursing? At least when the not-for-profits get it all wrong (and sadly, they sometimes do) we have clearer idea of who is responsible.

Maybe the buck stops with our ever-so-quiet Minister for Ageing, Christopher Pyne, and with a government whose market place policies leave frail older people, their families and their carers sadly wanting.

 
Posted on  Sunday, 02 December 2007 10:00
by  guest

Harry, good to hear that the Uniting Church home in WA is going well. Is there a decent staff/resident ratio? I guess we wait with much interest to see how the newly elected government goes with aged care. I would have thought that the issue would draw some votes. After all most of us have someone in our family who needs either community care or residential aged care.

Posted on  Friday, 30 November 2007 10:00
by  guest

Maybe Eric needs to have a gook around some the Age Care facilities. In W.A. the Uniting Church has just completed building a 104 bed nursing home. The staff is first class and the facilility, costing 17.5 million dollars, is second to none. As a non profit organisation the care given is superb. Maybe the new government will have the compassion to take funding of Aged Care more seriously than the heartless former gov't. I hope so but am not holding my breath. The votes in this area must be fairly slender however.

Posted on  Friday, 17 August 2007 10:00
by  guest

Hi Eric, I certainly agree that 'cottage industry' aged care is generally most unsatisfactory. I have commented on this on several occasions. However, I am firmly of the view that caring for frail aged people is a communal responsiblity and should not be abrogated to those seeking to make profits for shareholders. The prime responsibility of corporations is to their shareholders for one thing - not the residents. And for another, I don't think that the end-of-life experience should be for sale. Many people would say that the private hospitals do a fair amount of cherry-picking while the public system deals with the chronic and difficult health problems - as well as most of the trauma care. Glad the line of accountability is clear where you hail from. Sadly, it is not always the case. Trawl through the transcripts of Senate Inquiries in Hansard some time. The responses to questions show just how some proprietors refuse to be accountable for the facilities they run - as they seek to be accredited to run new places even after having been sanctioned for failing the first time around.

Posted on  Wednesday, 15 August 2007 10:00
by  guest

This is a rather biased and glib analysis of for-profit aged care providers. As in acute-health, it has been proven that it is possible to make a profit and provide outstanding care. Not for profits are capital poor, they run down facilities, infrastructure and equipment. It is the private operators that are taking over these poorly maintained dumps and turning them into world-class facilities. The notions that 100 beds means less staff is proposterous, the opposite is true in terms of economics. Small homes are financiallyunsustainab;e as fixed overheads can not be offset. Homes with 90 plus beds do beter, as fixed overheads are spread over a greater number of residents. It is the smaller homes that screw down staff numbers. The fragmented, cottage-industry that was aged care was truly an indictment. As fragmentation decreases, accountability and standards will improve. Few operators = greater accountability. I would never put my parents in a small not-for profit whose cash poor status means awful facilities, lacking equipment, less allied health staff etc. The quote ""Who then should be held accountable when neglect and abuse occurs - the board of directors, the facility manager – or perhaps the director of nursing? "" is the most stupid thing I have read on this site. Not for profit and for-profit operators all have boards of directors, DONs and facility managers. The line of accountability is clear. If you are going to analyse the impact of private operators, you should first step-over your biased ideology driveen position, and start to report facts.

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