20 December 2004

Government increases aged care funding

The government has given district health boards an additional $18m to fund residential care for older people, Associate Health Minister Ruth Dyson said today. The new money will enable DHBs to offer a three per cent increase in their contracts for aged residential care, up from the current offer of one per cent.

“In spite of increased funding of $52m for aged care facilities since 2001, our government is still trying to reverse a decade of neglect by the previous National government. Today’s injection of a further $18m will help address immediate cost pressures on residential services.”

Ruth Dyson said more work needed to be done to address long-term issues in the aged care sector.

“A number of issues are outstanding, including the impact of the Holidays Act and the effect of the recent nurses’ settlement on nurses’ and care workers’ remuneration outside district health boards.”

Ms Dyson said the Ministry of Health has a set up a working party to continue working to develop long-term solutions. The working party includes representatives from the Ministry of Health, providers, unions and other stakeholders, and will provide a report to the government early in the New Year.

ENDS

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