# ACA Media Release — If Aged Care Fails, The Health System Fails

**Source:** Aged Care Association / Scoop  
**Date:** 30 May 2026  
**URL:** https://community.scoop.co.nz/2026/05/if-aged-care-fails-the-health-system-fails/  
**Accessed:** 9 June 2026

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## Summary

The Aged Care Association says Budget 2026 "missed a critical opportunity" to stabilise aged residential care (ARC), warning that continued closures and mothballing of beds will increase pressure on hospitals, families, and communities.

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## Key Quotes

> "They treat aged residential care as something separate from the health system when, in reality, aged care is health care." — Hon. Tracey Martin, Chief Executive, ACA

> "When aged care works, hospitals work better. When aged care fails, the health system fails."

> "Just a fortnight ago, one of New Zealand's leading charities announced the closure of another 40-bed facility. That closure was not driven by a lack of demand. It was driven by a lack of sustainable funding."

> "Just one percent of the infrastructure funding already set aside by Government, targeted at the communities most at risk, could have helped preserve and grow desperately needed care capacity."

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## Key Points

1. **Budget 2026 missed a critical opportunity** to stabilise ARC; immediate action was needed, not just long-term reform through the Ministerial Advisory Group
2. **Facility closures are accelerating** — providers mothballing beds because the funding model no longer covers the true cost of care
3. **Impact on families**: beds disappearing means older couples separated, families forced to travel hours
4. **Solution proposed**: targeted infrastructure grant fund — just 1% of existing government infrastructure funding directed at at-risk communities
5. ARC provides hospital-level care, dementia care, respite, rehabilitation, and end-of-life care — it's part of the health system

## Related: $25m Winter Package Response (17 March 2026)

The Government announced a $25m winter package including up to 567 short-term residential care placements. ACA:

- Supports but notes facilities already at very high occupancy
- Short-term placements involve residents with significant clinical complexity
- Funding must properly cover additional costs (staffing, clinical oversight)
- Providers must have access to aligned health services without absorbing costs

**URL:** https://www.aca.org.nz/Public/Public/Our-Work/Media-Releases-List/Hospital-Capacity-Boost-Highlights-Critical-Role-of-Aged-Care-Sector.aspx

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## Relevance to KB

- **02_Aged_Residential_Care**: Key sector advocacy position on funding crisis
- **05_Funding_and_Subsidies**: Evidence of funding model failure
- **16 Political & Campaign Intelligence/11_Issue_Briefs**: Source material for aged care funding advocacy

## Cross-References

- 2026 Health Committee Report — 14 Recommendations (captured)
- 2026 Ministerial Advisory Group on Aged Care