Budget documents released this week by the Victorian government shows that it expects to save $75 million over two years as a result of private and not-for-profit providers taking over the management of the state’s aged care beds in Melbourne.
The state runs 25 residential aged care units in the city with a mixture of high-care and low-care beds. They include facilities in Caulfield, Heidelberg, Burwood, Brunswick, Flemington, St Albans and Bundoora.
This week the State Opposition raised concerns over the reforms with Shadow Minister for Seniors and Ageing, Jenny Mikakos, telling the media that the move towards privatisation would limit choice for Victorian families.
“Mr Napthine’s plans to privatise aged care will limit choice for those living in outer suburban and regional areas, which could lead to people paying more or having to move to another area.
“The comparison couldn’t be clearer: under Labor we redeveloped more than 40 aged care facilities across Victoria and expanded the system to meet the rising demand,” she said.
“Mr Napthine mustn’t allow the care of seniors to be sold off to the highest bidder.”
Ms Mikakos said that Labor remained committed to keeping public aged care facilities “to ensure Victorians have a choice about where they are cared for”.
In a strong riposte, Health Minister David Davis, speaking specifically about the government’s plans for aged care beds and the Greek community, told Neos Kosmos:
“We believe in metropolitan Melbourne there is an opportunity to work with the not-for-profit sector such as Fronditha, and other culturally appropriate aged care providers, as well as the private sector, to work through the best way to deliver culturally appropriate aged care.


“Contrary to recent assertions, services will be more tailored and appropriate to Greek seniors under the government’s initiative.
The minster cited the case of Southern Cross Care now running aged care beds that were previously run by Peninsula Health.
“That has been a very successful collaboration and we are prepared to look at that around other areas of metropolitan Melbourne,” said Mr Davis.


“We think the private sector and community sector can run aged care services as well and often better.” 

The Minister added that the 2012/13 budget update announced that the Victorian government would be growing non-government provision of aged care beds in metropolitan Melbourne, and that the total number of beds would increase under the government’s initiative as the federal government allocates additional licences each year. 


Aged care is regulated and funded by federal government. Identical accreditation and quality of care standards apply in the public, private and not-for-profit sectors, said the minister.
The government, he said, has no plans to roll out the privatisation in rural areas.

Council of the Ageing (COTA) Australia – the peak national organisation representing the rights, needs and interests of older Australians – have responded positively to the reforms.
Its chief executive Ian Yates told reporters this week that Victoria was one of the few states to retain ownership of residential aged care facilities, particularly in major cities.
Mr Yates said tight regulation of the sector meant the cost and quality of care for residents should be unaffected by any change of ownership.