Extra funding paid to aged care providers

Media Release

8 July 2005

Extra funding paid to aged care providers

Aged care providers will today be paid a funding injection to help address cost pressures on residential services.

This follows the Government's $18 million funding boost, announced in December 2004, which allowed District Health Boards to offer an increase in the contract price paid to providers for aged residential care.

The funding, backdated to July last year, will be paid to about 750 providers as part of their annual agreements with DHBs.

Providers were entitled to the backdated increase once they had signed and accepted their Aged Residential Care agreements with DHBs and had completed all necessary paperwork by the cut-off date of May 27.

A small number of providers who either failed to sign their agreements within the specified timeframe, have yet to return a signed agreement, or whose current agreement is still in draft, will not receive the backdated increase on 8 July. These providers will receive the ongoing 3 per cent funding increase when their agreements are signed. Any change to this position is a matter between individual DHBs and providers.

As well, funding has been provided for the additional costs faced by aged care providers as a result of the Holidays Act. The funding is for 2004/05 and is ongoing.

The amount paid to providers will vary as they face differing impact from the additional Holidays Act costs. This matter is being agreed between DHBs and providers.

Debbie Chin
Deputy Director General
Corporate and Information Directorate
Ministry of Health.

Memo Musa
DHB Lead CEO
Aged Residential Contract Review