Aged Residential Care Welcomes Increase

Aged Residential Care Welcomes Increase

MEDIA RELEASE 1 May 2007 HealthCare Providers NZ

HealthCare Providers NZ welcomes the Government's announcement that it will provide an extra $37.5 million each year for the next four years, on top of inflation adjustments.

"This increase acknowledges long term under funding in the sector and will assist providers in becoming sustainable in the medium term", said Martin Taylor CEO of HealthCare Providers NZ.

"It is too early to say what percentage increase this will mean for the 758 facilities that provide aged care to over 40,000 elderly each year, as the actual contract price increases are a matter for negotiation between providers and DHBs", said Mr Taylor

"This is welcome news for our annual contract negotiations which started in March and for our other set of negotiations which have been ongoing for over two years. These negotiations are seeking compensation for the impacts of the Holidays Act ($8.5 million per year), the DHB MECA on private sector nurse wages (63.3 million per year), and the 2006 minimum wage increase ($12 million per year)', said Mr Taylor.

The Minister also signaled that he wants DHBs to ensure that the funding will be passed onto low paid workers in the sector.

"We can confirm that the sector will continue its good record of passing on funding increases to workers. Last year caregiver wages rose on average 4.7% and nurse wages by 6.7%, which was in line with the 3% inflation increase given to rest homes and the 5.9% given to geriatric hospitals," said Mr Taylor

The funding increase also shows a commitment to the care and well being of the elderly from a Labour led Government, supported by New Zealand First.

ENDS

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