Sunday, July 16, 2000

AGED CARE PROVIDERS UNDER WORKCOVER HIKE PRESSURE

Aged care providers have claimed they would find heightened difficulty in
providing first class service to their clients following the Bracks government's
increase in WorkCover premiums, Shadow Aged Care Minister Helen Shardey said
today.

Mrs Shardey said nursing homes would face premium increases of up to 40 per cent
as a result of Bracks government changes to WorkCover legislation.

On top of the 15 per cent increase due to the reintroduction of so-called common
law legal actions and increases in statutory benefit levels, the Bracks
government has increased the industry rate for nursing homes by 21 per cent
(from 3.95 per cent in 1999-2000 to 4.78 per cent in 2000-2001).

While Premier Bracks has publicly announced the 15 per cent increase, the 21 per
cent industry rate increase has only been publicised in a WorkCover Premium
Order in the Government Gazette, and in information provided by the Victorian
WorkCover Authority to their agents.

Mrs Shardey's concerns have been echoed by the Victorian Association of Health
and Extended Care, which has expressed that the extra cost imposed on aged care
facilities will put at risk the current standard of care being delivered.

Mrs Shardey said the Bracks government's WorkCover hikes would patently hurt
aged care providers.

"The WorkCover premium increases will put great pressure on nursing homes'
ability to effectively staff their premises," she said.

"The bottom line is that aged care will be compromised and the level of care
reduced.

"Providers may unfortunately be forced to cut staff or look to cut costs
elsewhere because of the additional cost imposed by WorkCover premiums."

Mrs Shardey said the focus on neglect in aged care nursing homes this year had
created angst in the community.

"The Riverside Nursing Home episode raised tremendous fear in the community
about the importance of quality aged care. It also raised the damaging
consequences that can occur when the most vulnerable in our community are
neglected," she said.

"It will concern many Victorians if aged care providers are forced to compromise
their services because increased WorkCover premiums are creating an additional
financial burden."