❓ Ms. Brewer questions the Minister about the $100 million low-interest loan program for aged-care beds. The Minister confirms the program, explains delays due to legal and consultation requirements, and anticipates awarding tenders early next year.
AnsweredQoN 365Legislative Assembly
QuestionView source ↗
Health—Aged-care beds—Low-interest loans
365. Ms Sandra Brewer to
the Minister for Aged Care and Seniors:
I refer to the
government's promise to provide $100 million in low-interest loans to allow for
the delivery of an estimated 500 additional aged-care beds, which are urgently
needed.
(1) How many loans have been approved by the
Department of Health?
(2) How much funding is allocated in this year's
state budget for this initiative?
365. Ms Sandra Brewer to
the Minister for Aged Care and Seniors:
I refer to the
government's promise to provide $100 million in low-interest loans to allow for
the delivery of an estimated 500 additional aged-care beds, which are urgently
needed.
(1) How many loans have been approved by the
Department of Health?
(2) How much funding is allocated in this year's
state budget for this initiative?
AnswerView source ↗
(1)–(2) I am very happy to talk about our
initiatives in relation to stepping in because of the need we have identified
with residential aged-care and home care packages. We have talked about the
fact that WA, by many measures, does not get its fair share. WA has 11% of the
national population, but if we talk about WA being a third of the land mass of
Australia and the amount per head of population, depending on the level of
care, we are underdone. In the last election, we announced $140 million. As the
member said, that includes $100 million for a low-interest loan facility for not
only residential aged-care beds but also, importantly, concessional beds. This
is the area that is in demand now and will increasingly be in demand. In fact, we
think that changes to the federal Aged Care Act will put additional pressure on
those concessional beds. The providers are telling me that the per-day
compensation they get from the federal government is underdone. That is why we
identified concessional beds. The member can imagine them being the people who might
end up in hospital because of the financial pressures that are on them. If they
are sick and they cannot get alternative beds or they cannot pay for
alternative care in the private system, they might end up in our hospital beds.
So, yes, there is a $100 million facility. We are hoping to unlock some of that
money through the midyear review.
What we have been doing since
the election is going through and making sure that we have the legal capacity
to lend that money. It is not something that Health has done before. It is
innovative. What we have done is identified a new
need in the system. Loaning money is not something that Health has done in
the past, so we have made sure that we have the statutory capacity to do that.
We are also consulting with the providers out there about what they need. For
instance, it might not be new builds. It might be new builds, but it also might
be refurbishments. It might be extending existing facilities. It might be
bringing online beds that are not being used to their full capacity. We are hoping
that we will be able to award tenders early next year. That is the current
plan.
initiatives in relation to stepping in because of the need we have identified
with residential aged-care and home care packages. We have talked about the
fact that WA, by many measures, does not get its fair share. WA has 11% of the
national population, but if we talk about WA being a third of the land mass of
Australia and the amount per head of population, depending on the level of
care, we are underdone. In the last election, we announced $140 million. As the
member said, that includes $100 million for a low-interest loan facility for not
only residential aged-care beds but also, importantly, concessional beds. This
is the area that is in demand now and will increasingly be in demand. In fact, we
think that changes to the federal Aged Care Act will put additional pressure on
those concessional beds. The providers are telling me that the per-day
compensation they get from the federal government is underdone. That is why we
identified concessional beds. The member can imagine them being the people who might
end up in hospital because of the financial pressures that are on them. If they
are sick and they cannot get alternative beds or they cannot pay for
alternative care in the private system, they might end up in our hospital beds.
So, yes, there is a $100 million facility. We are hoping to unlock some of that
money through the midyear review.
What we have been doing since
the election is going through and making sure that we have the legal capacity
to lend that money. It is not something that Health has done before. It is
innovative. What we have done is identified a new
need in the system. Loaning money is not something that Health has done in
the past, so we have made sure that we have the statutory capacity to do that.
We are also consulting with the providers out there about what they need. For
instance, it might not be new builds. It might be new builds, but it also might
be refurbishments. It might be extending existing facilities. It might be
bringing online beds that are not being used to their full capacity. We are hoping
that we will be able to award tenders early next year. That is the current
plan.
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