Aged residential care sector under funding pressure - report

The cost of caring for our oldest, and some of our most vulnerable, is going up so much faster than the funding its receiving that the gap is now somewhere in the region of $650 million. A $650 million dollar funding gap is putting pressure on New Zealand's aged residential care sector, according to a new report from Westpac. The bank says the gap has widened significantly from about $170 million in 2014, as funding fails to keep pace with a rapidly ageing population, rising costs of care and ongoing workforce shortages. It finds ensuring the financial sustainability of the sector is now a key challenge, suggesting reforms to the current funding model. Westpac NZ industry economist Paul Clark spoke with John Campbell