Aged Care Market Strategy Phase Two Consultation

An older woman with white hair, standing by a gate with the sign "Rose Cottage". She is wearing a light purple sweater over a blue collared shirt. Facing her is a caregiver in a blue uniform with her back to the camera. The setting appears to be a sunny residential garden, and it seems they are engaged in a conversation or an outdoor activity.

We are developing an Aged Care Market Strategy to assess the impact of key aged care reforms and identify how the aged care market can be better positioned to deliver improved outcomes for older people.

In September 2023, representatives from 53 home care, residential care and retirement living providers participated in 9 workshops. Workshops were held with a variety of provider types, sizes and geographic distribution, including Multi-Purpose Services (MPS) and government providers.

What we heard

Some consistent themes were identified across the workshops.

Challenges for the future aged care market

  • Workforce shortages must be addressed for the aged care sector to be sustainable.
  • Viability pressures are a key risk for the future aged care market.
  • Current compliance requirements can pose challenges for innovation.
  • The home care sector will need to expand to meet future demand.
  • A diverse market of providers is required to meet the diverse needs of older people.

Opportunities for the future aged care market

  • More flexibility in service delivery, including rehabilitation and restorative care.
  • Expansion of co-location and neighbourhood care models to create aged care communities.
  • Better integration of the aged care system with health and other care systems, including disability.
  • Greater focus on providing specialist dementia care.
  • Embedding cultural safety in all aspects of aged care.
  • More collaboration and partnerships across the broader care sector.
  • Greater focus on integrating and aligning carer supports and connectedness – a ‘whole of family’ approach to aged care.

Opportunities for market stewardship

  • Provision of timely and reliable market information and data to providers.
  • Facilitation of cross-sector collaboration and innovation.
  • Establishment of a clear standard of excellence for providers.
  • Exploration of scalable ICT infrastructure solutions.
  • Monitoring and adjusting the market stewardship approach.

What we’re doing

We are working to ensure the aged care sector is sustainable and meets the needs of all Australians, now and in the future.

The insights identified in these workshops will inform the development of the Aged Care Market Strategy and the Australian Government’s role as a market steward.

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Let's change aged care, together

Every Australian should feel confident about accessing high quality and safe aged care, when and where they need it.

The changes mean Older people will have greater choice and control, services that respect and meet their needs, and support to stay independent as they age.

To find out more and help design the changes, visit the Get Involved page or call 1800 318 209.

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The Department of Health and Aged Care acknowledges the traditional owners of country throughout Australia, and their continuing connection to land, sea and community. We pay our respects to them and their cultures, and to elders both past and present.