New data reveals that as Australia’s population ages, our aged care system is struggling to keep up with the increased demand.

For every 1000 people aged 70 plus in 2024, there were 67.5 beds in the aged care sector, compared to 74.2 beds just three years prior. While the number of aged care beds in Australia has increased by 3,842 since 2022, this has not kept up with Australia’s ageing population. While 85 aged care homes have opened since 2021, 103 have closed. This highlights the precarious state of the industry with many aged care facilities facing increasing financial pressures.

Experts say the increasing shortage of  aged care beds having profound consequences on our ability to meet the care needs of our older population.

So, what is the impact of this issue and what can be done about it?

What are the consequences?

A shortage of aged care beds is placing significant strain on the nation’s hospital system.

The latest data reveals that 438,779 nights in hospital were spent by elderly patients waiting for a place in aged care in 2022-23.

Queensland’s elderly spent the most hospital days waiting for residential aged care, with a total of 163,342 days. This was followed by NSW (150,496), South Australia (58,549), Tasmania (11,144), the Northern Territory (7,065), and Victoria (4,305).

The wait time in hospital can often be significant. Four in ten wait more than nine months according to the productivity commission.

Experts warn that hospitals are not designed to care for aged care patients, and this reduces their capacity to provide acute and emergency care.

However, increased pressure on hospitals is not the only consequence of Australia’s shortage of aged care beds.

Some aged care patients are having to re-locate or travel large distances due to a lack of aged care beds in their area.

Facing the possible closure of the Mercy Residential Aged Care Facility in Singleton, New South Wales, some residents are concerned they may have to move to Newcastle, an hour’s drive away due to a lack of aged care beds available in the area. Former Singleton mayor John Martin is one of the residents affected.

“I’m worried about where I’ll go,” Mr Martin said in an interview with the Herald Sun.
“At the moment, it looks like we might have to move out of town, and I don’t want that to happen. Singleton is my home.”

What can be done?

Experts say that Victoria’s lower rate of hospital days for aged care patients is due in part to its Transition Care Program. The program provides short-term services, including nursing, personal care, physiotherapy and case management to people transitioning from hospital to aged care.

Some experts say  specialised geriatric hospitals could also form part of the solution.

Significant investment is also needed from the government to expand aged care capacity and improve the viability of smaller aged care providers. Management of the Mercy Aged Care facility in Singleton say their 44 bed facility is unviable in the current regulatory environment, with facilities requiring at least 100 to 120 beds to survive.

The government claims it has already taken steps to address this issue, providing $610.4 million to state initiatives to get older Australians out of public hospitals and into aged care.

However, it’s clear more must be done to ensure Australia’s aged care system has the beds available to meet the needs of our aging population.

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Article References

Cross, J, Beaini, A & Fleming, A (16 February 2025) ‘Elderly Australians left stranded in hospital waiting for a spot in aged care as spots dwindle’, Herald Sun, accessed 18 February 2025.

Hellocare (17 February 2025) ‘Hospitals overwhelmed as elderly patients wait for care’, Hellocare, accessed 18 February 2025.