Premium Charging within New Zealand Aged Care

Premium Charging involves making available options whereby residents in aged care homes can choose to pay for additional features to enhance the quality of their care. This could include bigger room size and facilities, services or extra equipment.

It's no secret the aged care sector needs more revenue to keep up with New Zealanders living longer and increasing in number. Also, people are demanding (and are willing to pay for) more from their aged care providers. Nonetheless, there is still hot debate between government and industry players over the ethics and practicalities of Premium Charging.

Two key factors at play are New Zealand's changing demographics and catering for ethnicity. Both have substantial implications for existing and future aged care facilities and how they operate in New Zealand now, and into the future.
 

What is Premium Charging?

Currently, aged residential care providers can charge some of their residents extra for services that are additional to the basic services stipulated by DHBs. Premium Charging is essentially about adding extra components to the aged care living conditions everyone in New Zealand is already entitled to. These extra 'user pays' features can include:

• Larger rooms, perhaps with an en-suite, a pleasant view, or prime location to facilities
• Additional equipment over and above the basics, ie Super single beds (1100 wide) vs single beds (900 wide) can be as little as a few dollars a day
• Toileting / showering – this may mean equipment to better suit the resident
• Patient lifter, seats and other adapted equipment for special needs
   

The Impact of Changing Demographics.

The number of people aged 65+ in New Zealand has doubled since 1980 and passed 600,000 in 2012. This number is likely to exceed 1 million within the next 20 years.* The increasing number of people aged 65+, and particularly the increasing number of people aged 85+, will have future health needs that require more facilities, equipment and support.

The above data has major implications for New Zealand's health and disability sector, including aged residential care, in the years ahead. The demand for basic aged care equipment, along with the demand for optional equipment, is set to increase and keep increasing. Cubro's position in the current market means it is well prepared for what's in store.
 

Catering for the Elderly in Cultural Contexts.

Along with New Zealand's ever-increasing demographic figures will come even more diversity in cultural issues that the aged care sector will need to take into consideration. Within New Zealand, and Auckland in particular, the demand to accommodate multicultural preferences into living conditions is becoming more and more an issue for providers.

Food and diet are major cultural factors, as are religious views, eg. private spaces for prayer. Also of importance include colours of internal cladding and soft furnishings, and differing views about toileting and showering. Alongside these preferences comes the demand for personalised services and equipment to preserve one's cultural wellbeing.
 

Premium Charging within Aged Care in the Future.

With many residents spending 10+ years in aged care centres, often starting out living independently in their own dwelling in a 'village' environment, before moving into shared rest home facilities and eventually into acute hospital care, the demand for a broader array of equipment, services and lifestyle options is ever-increasing.

New Zealand's 65+ cohort is actively mobile, both physically and socially. Many continue to drive into their 80s, so they require car parking and / or garages. They're educated (either at tertiary-level or in life experiences), technically savvy and often well travelled. Essentially, their zest for life extends well beyond retirement. Here are just a few of the features New Zealand's aged care centres may see in the future (if not already): 

• Gyms, swimming pools, spas and saunas
• 'Technology' hubs – computer rooms that may have tutoring
• Bars, restaurants and menus with more variety
• Clubs, events and outings with other aged care centres
• Cultural activities involving music, the arts and architecture
• Indoor and outdoor spaces to entertain children, grandchildren and other family members

As the elderly live longer, increase in number and the mix of ethnicities, religions and other cultural factors continues, the demand for Premium Charging in all aspects of residential aged care is something the government, residential aged care providers and the associated industries, cannot afford to ignore.

Cubro is committed to adapting to New Zealand's changing demographics and the cultural contexts in order to provide the elderly with the equipment they need to maintain a comfortable and dignified standard of living. We will continue to stay up-to-date with Premium Charging while focusing on (and stocking) the latest in aged care equipment. 

 

Contact Jamie Abercrombie on Freephone 0800 452 273 ext 8020 to discuss your aged care equipment requirements.