We all know that Australia’s population is ageing. But is our hospital system ready? And is the NSW aged care system prepared?
A special inquiry into the NSW healthcare system has found that it is not.
The inquiry issued a stark warning to the state’s politicians. Serious problems will continue to develop if nothing is done about the current aged care bed shortage.
It says that without change, our aging population will cause our hospital system to be overwhelmed by chronically ill patients.
So, what is the issue and what is causing it?
What is the issue?
The inquiry reveals that a high number of older patients are occupying beds in public hospitals.
It said it was “beyond comprehension” that the state was treating so many patients in hospital wards for extended periods. In many cases, patients remain in hospital long after acute care has been provided. The report recommended that many of these patients — who are often elderly — should instead be treated in aged care facilities.
However, in many cases, aged care beds are simply not available to treat these patients, adding further pressure to our already stretched healthcare system.
Local health districts (LHDs) are bearing the financial cost of these patients. Unnecessary hospital admissions also contribute to ongoing issues. These include bed block, ambulance ramping, and long emergency department wait times.
The report acknowledges that the hospital is not the best place for many older patients to be. It says the risk of hospital-acquired complications, falls and social isolation all increase the longer a person stays in hospital. Therefore, receiving treatment in alternative systems can be beneficial for the patient as well as the healthcare system.
What is causing these issues?
The inquiry said that while the NSW health system is a good one, it is too reactionary and does not invest enough in preventative treatments.
The report noted that while NSW Health classifies 10 per cent of its budget as “prevention and promotion,” actual spending on prevention may be as low as 2 per cent of the total health budget.
Richard Beasley was commissioner of the report, which recommended increased funding for preventative healthcare measures.
“If NSW Health remains funded and resourced, in the main, as a reactive system that treats acutely unwell people in public hospitals, there is a substantial risk that it will soon be overwhelmed by what looms as a huge increase in healthcare demands by an ageing population with high expectations” Justice Beasley wrote in the report.
Two-thirds of the disease burden in NSW is conditions that can be treated outside of hospital and in many cases are preventable.
The report identified fragmented funding between state and federal governments as a key cause of this issue. It called on the Federal Government to commit more funding to the New South Wales health system.
However, the commission said that the NSW government should not wait for Federal funds to address the issue.
The report makes it clear that strategic investment in preventative care is essential. Without it, both state and federal governments will face growing pressure on a hospital system already under strain.
A skilled well-resourced aged care workforce is essential to meet the needs of our aging population.
If you have ever considered a career in aged care, now could be the time to make a move with endless opportunities available.
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Article References
Aubusson, K (16 May 2025) ‘‘Beyond comprehension’: The massive blind spot in NSW’s health funding’, Sydney Morning Herald, accessed 20 May 2025.
Shultz, S (19 May 2025) ‘Major review of NSW healthcare funding damning of aged care bed shortage’, Aged Care Insite, accessed 20 May 2025.