Aged care advocates are growing increasingly concerned about the hidden fees that many aged care residents are forced to pay.

Of particular concern to experts is “additional services charges”. These can be quite high, and in many cases, they are not optional. Many aged care facilities include these fees as a condition of entry, and residents can accumulate debt if they are not paid.

So why are these fees being charged, and what can be done about them?

What are aged care residents being charged for and what are the impacts of this?

Under Australian law, aged care facilities can charge extra for additional care or services in addition to those they are required to provide by law.

You would think that additional care or services would be non-standard, specific services. However, this is not always the case.

Increasingly, aged care residents are being charged extra for what many would consider to be basic services. For example, they may be charged for having the use of a bed or having their meals prepared in-house.

In many cases, aged care residents are being forced to pay for services they can’t even use. For example, residents may be charged for the use of a gym when their physical condition prevents them from using it.

In other cases, residents with diabetes have been charged for the use of a lolly trolley. Alternatively, residents may be charged for services they don’t want, such as a happy hour when they don’t drink alcohol.

Sometimes residents can be charged up to $31 a day for these additional services.

In many cases, residents must agree to these charges as a condition of entry to the facility. If the fees are not paid, residents can accumulate debt. This can leave them unable to pay for essential personal care or medication.

In the last year, there has been a 20 percent increase in  aged care complaints. Many of these complaints relate to the provision of fees and poor communication.

Why are aged care providers charging these fees?

In many cases, aged care facilities charge these additional fees to improve their financial position. Australia’s aged care homes have lost a total of $5 billion in the last five years. Half of Australia’s aged care facilities are currently losing money, with the performing aged care facilities losing $15 per bed per day. Therefore, there is a need to find additional sources of revenue.

What should be done about this?

There are several things aged care facilities can do to help address this issue. These include:

· Improve transparency: Experts say greater transparency around fees is required. Currently, many aged care residents are often left confused about what they are being charged for. Additional fees should only be charged with the agreement of the resident and the resident should not be charged more than the amount they have agreed to pay.
· Communicate clearly: Aged Care providers must ensure information about fees is clearly communicated at all times.
· Respect resident wishes: Aged care providers should ensure that the preferences of their residents are taken into consideration whenever possible.

It’s hoped the new Aged Care Act, which is currently before a Senate Committee, will help to improve the power balance between providers and residents by strengthening the rights of residents.

Older Australians should always be treated with respect. It’s critical that providers treat residents fairly and ethically in all their interactions.

Are you looking for a career in aged care? Aged Care Resumes can help. We are pleased to offer various services including our resume and cover letter writing service.

Article References

Australian Government Aged Care Quality & Safety Commission, (2023) ‘‘Additional fees residential aged care‘ Australian Government Aged Care Quality & Safety Commission, accessed 6 November 2024.

Cross, J (6 November 2024) ‘‘Pillows, happy hour’: Shocking items aged care charged for’, Daily Telegraph, accessed 6 November 2024.

Hellocare (6 November 2024) ‘Paying for a Pillow? Complaints Rise as Aged Care Additional Fees Shock Residents’, Hellocare, accessed 6 November 2024.

Lunn, S (28 July 2024) ‘Aged care bed supply at a ‘crisis juncture’: report’, The Australian, accessed 6 November 2024.