Communities Economically Benefit from Aged Care Facilities

Communities Economically Benefit from Aged Care Facilities

There is a substantial economic benefit for both rural and urban communities from the construction and operation of aged care facilities.

That is the finding of a recent COVEC report into the economic benefits of the aged residential care sector.

The report modeled the economic impacts of an 80 bed aged care facility on a rural and urban community over a 10 year period. The COVEC report suggests a fair and reasonable assessment of the economic effects of a new 80 bed facility over 10 years ranges between:

• $69 million to $78 million increase in regional output,
• $31 million to $36 million increase in regional GDP,
• $16 million to $18 million increase in household income, and
• 660 to 750 people-year increase in employment.

“This report confirms there are considerable economic benefits for all communities from an aged care facility” said Martin Taylor CEO of the NZ Aged Care Association.

“The impact of aged care facilities is often greater in rural communities where they are a major employer and bring health services into a community that would otherwise not be there. For the elderly, their families, and the employees themselves this is a significant gain” said Mr Taylor.

The COVEC report is based on data from the Aged Residential Care Service Review released in September 2010.

The full COVEC report can be downloaded from the NZACA website at http://nzaca.org.nz/publication/documents/Covec-EconomicImpactreportforAgedCare.pdf

ENDS

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