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Nursing homes will soon publish charges for so-called “premium” rooms, after Covid-19 halted a change designed to provide more transparency about the controversial charges.
The costs of the premium rooms can vary from an extra $ 50 to over $ 100 more each week, for features like a bathroom or garden access.
DHB funds for eligible residents do not cover premium room charges.
Fees are negotiated between the household and the resident or their family. Such a charge is a growing source of income, but there have been concerns about how much information people have about prices.
DHBs have lobbied for senior care providers to publish minimum and maximum charges for rooms as of July 1, but the Covid-19 crisis delayed the initiative.
A new deadline to resolve the issue has been set for October 1.
The NZ Aged Care Association, which represents providers representing more than 90 percent of the industry, says that nursing homes are government-funded for a standard 11-square-meter room with shared facilities. Families often want a larger room for their family member and a bathroom, which is why it is necessary to pay an additional charge for a premium room.
Transparency already exists and room prices are disclosed to residents and families at the time of viewing and before a room is confirmed, the association says, and charges are clearly stated in any admission agreement.
However, Consumer NZ has raised concerns about the charges, including the false impression that they provide a higher level of care. Complaints include that nursing homes may promote premium rooms as the best or the only option available.
If a facility does not have standard rooms available, it may require a new resident to pay for a premium room only if the occupancy is 90% or more, and they have found a provider within 10km that has a standard room available. Those rules still cover facilities that only have premium rooms.
The focus on nursing home costs comes after Parliament’s Community and Social Services Committee recommended that the government investigate the establishment of a Commissioner for the Aging.
It comes three years after the Labor Party pledged before the 2017 general election to introduce a Commissioner of Care for the Elderly, following a cross-party investigation that uncovered falling standards of care for the elderly. The position was planned in the first Labor budget, but it never materialized.
Nursing homes have once again closed their doors to visitors after community transmission of Covid-19 resurfaced in Auckland.
Rooms for ‘premium’ nursing homes
• Premium room charges can range from $ 50 extra to over $ 100 more per week for features like a bathroom or garden access. This is different from a room that has additional services, such as Sky TV.
• There have been concerns about how costs are presented and explained to residents and their families. Premium room charges are negotiated between the home and the resident and must be clearly specified in the admission agreement.
• DHB funds for eligible residents do not cover premium room charges. Health boards want households to publish more information about these costs.
