Aged care service model and funding review – Phase 2: Modelling options for improved funding and service models

In response to Te Pae Tata, Health New Zealand has initiated a review of the funding and service models for aged care services. We conducted the review in two phases.

In the first phase, we set out a comprehensive picture of the current state of aged care and the prevalent issues in the sector. We identified five pressing issues:

1. Both age residential care (ARC) and home care support services (HCSS) are under-funded.
2. The funding models used to distribute funding to the sector are no longer fit for purpose.
3. There are material ethnic inequities in accessing aged care services.
4. The aged care sector continues to face significant workforce pressures.
5. Issues with aged care are exacerbated in regional and rural New Zealand.

Increasing funding alone is not sufficient to generate improved outcomes. While funding models are required for both age residential care (ARC) and home care support services (HCSS) to incentivise the efficient delivery of services, the system also needs to be designed in a way to enable pathways of care that allow people to live at their desired level of independence.

This report, compiled by David Moore, Rohan Trill, Mehrnaz Rohani, Julius Ohrnberger and Lockie Woon, presents our findings from phase two in which we focus on modelling and predicting the impacts of options and scenarios for better funding and service models in ARC and HCSS.

The earlier Phase One report is on our website.