State and territory leaders have held an emergency meeting calling on the Federal Government to urgently fix Australia’s aged care crisis. An increasing aged care bed shortage is leading to growing wait times for aged care places. This is leaving thousands of older Australians stuck in hospitals. This puts unnecessary pressure on the already strained health system.

So, what is the issue?

What is the issue?

A Grattan Institute report found that the Federal Government should cover costs when patients are stuck in hospital waiting for an aged care bed. More than 3,700 people across the country remain in hospital despite being clinically fit for discharge. Experts say this is an unsustainable trend as the population ages.

The report found that taxpayers spend $6000 more on hospital stays for patients waiting for aged care than for those who return home. This adds up to $75 million in extra costs nationwide. The number of delayed discharges for older people has more than doubled since 2020. The average wait is now 112 days. This means many patients spend months in hospital beds that could otherwise be used for acute care.

Peter Breadon authored the report. He says bed block places great financial pressure on hospitals.

“This is adding a meaningful amount of cost, just the extra stay in hospital, in a system that’s already under significant and growing pressure,” he told the Courier Mail.

He warned that without urgent action, the issue will only get worse.

“The other thing we’ve seen in our research is that those costs are ramping up really quickly … if action is not taken, the risk is that those trends will continue,” he said.

Queensland Premier David Crisafulli said the Federal Government should take more responsibility in addressing the issue.

“This is a national issue, it is a national crisis, and it’s a national responsibility, and states and territories across the board are uniting to rescue the stranded Australians,” he said.

In Queensland, blocked beds are costing $2.5 million a day — or $912 million a year. They are placing extreme pressure on the healthcare system. Emergency departments and surgical units are among the areas most affected.

NSW Health Minister Ryan Park said this was an issue of major concern to him.

“That causes massive issues in terms of bed block, that causes massive issues in terms of delays, and it’s simply not fair and not acceptable in a system that’s meant to be jointly funded equally,” Mr Park told the ABC.

The states are also asking the Federal Government to honour hospital funding commitments made in 2023. Under that agreement, national cabinet agreed the Commonwealth would lift its funding share to 42.5 per cent by the end of the decade. It would then increase to 45 per cent by 2035. However, many leaders say action is needed now, not years into the future.

A challenging situation — but growing opportunity

While the current situation is challenging, it also highlights the growing need for skilled aged care workers across Australia. As pressure builds on hospitals and aged care facilities, there is increasing demand for professionals who can deliver quality care. Workers with person-centred care skills, clinical knowledge and strong communication abilities are especially sought after. With an ageing population and ongoing aged care policy reform, the sector is expected to continue expanding. Now may be the ideal time to consider a rewarding career in aged care.

Are you looking for a new career? Aged Care Resumes can help. We are pleased to offer resume writing and selection criteria services tailored to the aged care sector. We help you present your skills professionally and stand out in a competitive market.

Article References

Cockburn, P & Dalzell, S (18 November 2025) ‘Public hospitals wasting $1.2b a year and hindered by ‘bogus budgets‘, Grattan Institute says’, ABC, 21 November 2025

Dalzell, S (19 November 2025) ‘States launch coordinated attack on federal handling of public hospital negotiations’, ABC, 21 November 2025

Fellows, T (18 November 2025) ‘Thousands of Aussies languishing in public hospital beds amid nationwide aged care shortage’, Herald Sun, 21 November 2025

Mulveney, M (18 November 2025) ‘Aged care crisis: State, territory leaders to demand federal govt act’, Courier Mail, accessed 21 November 2025