Cost crunch hits aged care services

The Rural City of Wangaratta has announced its intention to exit the delivery of aged care services which cater for 1500 clients across four service streams. An independent review of council's long-term sustainability with the services found that restrictive funding and regulatory settings were key reasons sparking council's plans to walk away. Support at Home services are proposed to conclude by late September 2026. Commonwealth Home Support Program (CHSP), Department of Veterans' Affairs (DVA), and Home and Community Care Program for Younger People (HACC PYP) services would continue until mid-2027. Council has guaranteed there are no immediate changes to services, and all clients will continue to receive support as usual during this period. It will consult with staff and continue communicating directly with clients, carers, and families. The final decision will be taken to a future council meeting. A council spokesperson said their priority throughout this process is to ensure continuity of care and minimise disruption for clients. "This proposed change has not been taken lightly and follows a detailed review of council’s ability to operate in an increasingly complex and changing aged care system," they said. "The review found council’s operating model is not sustainable under new funding and regulatory settings and carries significant governance, compliance, and clinical risks. "National aged care reforms, including the Aged Care Act 2024, have increased provider requirements and created a more complex environment, with many Victorian councils already exiting or reviewing their role in aged care." Mayor Irene Grant said the intention reflects both the review's findings and sector changes. “We have a long history of supporting older residents in our community," she said. "This proposed change has been a difficult decision for council. "The aged care system has changed significantly, and the review has confirmed that council is no longer best placed to continue delivering these services into the future. “Our priority is to ensure that older residents continue to receive the care and support they need.” Council will continue to deliver services during the transition, working with the sector to support clients in moving to appropriate providers. Ten aged care providers currently serve the region, with additional providers considering expansion into the area. Chief executive officer Matt Nelson said council’s priority is to ensure continuity of care and minimise disruption. “Clients will continue receiving services as usual; nothing changes immediately," he said. "Council will provide clear information and support clients to understand their options, so they can move to an appropriate provider when the time comes. “We will also support staff throughout this period, including exploring redeployment and transition opportunities. "We are confident that staff who wish to continue working in aged care will be highly sought after by local providers.” While council is proposing to step away from direct service delivery, it will continue its broader role in supporting older residents through assessment services, community programs, partnerships, and advocacy. Council also proposes to establish an Aged Care Navigator and Advocacy Service to assist residents and carers in navigating the aged care system and connecting with appropriate services during and after the transition. Detailed information for clients, carers, families, and staff, including frequently asked questions, is available at www.wangaratta.vic.gov.au/AgedCare Clients can also call Support at Home phone hub on 1300 982 662 or CHSP, DVA, and HACC PYP on 03 5722 0790.

Cost crunch hits aged care services

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