2 July 2014
An analysis of recently published aged care facility prices by consumer ratings website Aged Care Reviews has discovered nearly a third of all facilities in Victoria have set their public price to just under the government’s approval threshold of $550,000.
Mandatory publication of aged care prices on the government MyAgedCare.gov.au website became compulsory on 1 July 2014. Prices over $555,000 must gain special approval from the Aged Care Pricing Commissioner.
“Of the 736 aged care homes in Victoria with a price listed, 269 facilities have a listed price of between $500,000 to $550,000. That means 31.5% of aged care facilities in Victoria who have listed prices to fit just below the government’s approval threshold of $550,000” said Aged Care Reviews Co-Founder, Kenneth Ray.
“Aged care is moving into a new ‘user pays’ era, and operators are free to set their prices. It’s great that prices must be made public– it’s another step forward for the industry toward transparency” said Mr Ray.
Mr Ray continues, “But, a family being forced to sell their home doesn’t care about furnishings and fittings. They care about the quality of care that will be received by their loved one. That’s where a website like ours steps in.”
“Aged care accreditation is a minimum standard, a ‘tick a box’ assessment done every three years with most audits notified in advance. The real quality of care that is received varies greatly between operators and facilities. And it’s care that residents are really paying for. If prices are going up, so should the expectations about quality of care to be received.
“In this environment we urge potential residents and their families to think not just about price and room furnishings, but about the quality they will be paying for. Do research early on, look beyond traditional marketing material and to sites like Aged Care Reviews to understand the true situation they are being asked to pay for” said Mr Ray.
Founded by two Melbourne based entrepreneurs and launched in January 2014, Aged Care Reviews already has over three hundred reviews, mostly on Victorian facilities. Aged Care Reviews is currently live and receiving reviews.
For media comment please contact our Head of Media via email to media (at) agedcarereviews dot com dot au