Consultation document on premium-only rest homes released

Associate Health Minister Jo Goodhew today announced the release of a consultation document on a proposal to allow premium-only aged residential care facilities.

Premium-only facilities are those that provide additional services with all their rooms and therefore charge extra for every room.  A 2009 survey found that 44 per cent of facilities had some premium rooms.

“Like health services around the world, one of the greatest challenges we face is an ageing population. We are committed to planning and providing for an increasing demand for residential care,” Mrs Goodhew said.

“Allowing some premium-only facilities will give New Zealanders increased choice and give providers greater freedom to design and operate their facilities.  It will also support continued private sector investment in aged residential care, particularly in higher cost areas. 

“To balance this, safeguards are proposed to ensure aged residential care remains affordable and available to all older New Zealanders.  Sufficient standard, or no extra charge, rooms will still be required to be available in each region.”

The proposal also clarifies the rules for facilities that have a mix of premium and standard rooms, to ensure they do not operate as de facto premium-only by having very few standard rooms.

“I encourage aged residential care operators, consumer groups and anyone else with an interest in aged residential care to provide feedback on the proposal”.

Copies of the consultation paper and information about how to make a submission is available on the Ministry of Health’s website www.health.govt.nz.  The closing date for the consultation will be 15 February 2013.