Anglicare, one of Sydney's leading nursing home providers is calling on the federal government to rethink a funding policy that it says is driving many charity-run facilities to the brink of destruction.
ANZ bank analysts estimate the government's current Aged Care policy contains a three billion dollar black hole when it comes to funding for the nursing home sector over the next ten years.
The Aged and Community Services Association concurs, estimating that current funding levels have led to close to 60% of New South Wales' nursing homes operating in deficit.
Anglicare has already poured 20 million dollars into upgrading its eight Chesalon facilities over the past five years.
But the charitable organisation is bracing itself for further funding shortages.
Anglicare's Jannali, Malabar and North Manly homes will not meet new federal government building requirements to be introduced in 2008.
The new requirements include specifying mostly single bedroom accommodation and smaller lounges in place of larger communal areas.
Anglicare's general manager for Aged Services says nursing homes are being forced to get bigger, but many occupy sites that simply won't allow expansion.
"A new capital funding system needs to be developed if we are to be able to offer older people safe, comfortable and functional buildings," Ms Allen said.
Ms Allen says the funding crisis, combined with the new building requirements, is likely to force the closure of some of Sydney's best-practice nursing homes.
"Under the government's current Aged Care policy it will become increasingly difficult for the elderly of Sydney to get the kind of Christian care that not-for-profit operators like Anglicare now provide."
She warns that the lack of significant capital grants from the federal government will throw Anglicare back on to the generosity of the public to provide the millions of dollars needed for necessary upgrades.
