The New South Wales government has allocated $35.7 million in its latest state budget for a pilot program aimed at reducing hospital bed block caused by elderly patients awaiting aged-care placements. The funding will support initiatives designed to move these patients out of public hospitals and into appropriate care settings.
NSW Health Minister Ryan Park emphasized the state's need to take independent action due to ongoing challenges in securing placements funded by the federal government. As of March, approximately 1,300 patients remained in NSW hospitals awaiting aged-care or National Disability Insurance Scheme (NDIS) support. Park described the situation as unsustainable and indicated that the state was compelled to develop its own solutions after limited progress at the federal level.
“The growth in the number of stranded commonwealth aged-care patients in our health system is unsustainable,” Park said, adding that the new funding package is not intended to signal that the federal government can step back from its responsibilities. He affirmed expectations that the commonwealth continue efforts to address the issue.
The $35.7 million will be spread over two years, focusing on a three-pronged strategy. This includes $15 million for non-hospital, interim aged-care placements within the NSW health system, $13 million for temporary home care services, and $7.3 million to support early intervention programs. The early intervention funds will be channeled through allied health professionals with a goal of keeping elderly individuals healthy and reducing hospital admissions.
The initiative comes amid a broader $10.3 billion health budget increase announced by the Labor government, which includes funding to hire 9,000 additional health workers. This follows a significant pay rise for nurses and midwives secured through the Industrial Relations Commission, with an extra $2.9 billion allocated to health worker wages.
The state’s move also coincides with other budget measures targeted at relieving pressure on federal programs. Among these, $600 million has been earmarked to establish Thriving Kids supports, designed to divert children with mild to moderate autism from the NDIS to newly created state-based services.
Despite receiving $4.5 billion in federal funding through the National Health Reform Agreement, NSW officials continue to press the commonwealth over aged-care coordination challenges that impact hospital congestion. The state’s pilot program represents a direct response aimed at easing bed block while pushing for sustained federal involvement.