The Hidden Crisis: Lack of Funding for Physiotherapy and Allied Health in Aged Care Facilities

Allied Health Funding Crisis

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As Australia’s aged care sector continues to face scrutiny and reform, one critical issue remains alarmingly under-addressed: the chronic underfunding of physiotherapy and allied health services. These services are not optional extras — they are essential for maintaining the dignity, mobility, and independence of elderly residents. Yet, in many residential aged care facilities, access to qualified physiotherapists, occupational therapists, dietitians, and speech pathologists remains limited due to restrictive budgets and systemic funding gaps.

Why Allied Health Services Matter

Allied health professionals play a vital role in aged care. Their work helps older adults manage pain, maintain mobility, prevent falls, improve communication and swallowing, and ensure nutritional well-being. These outcomes are not just clinical—they directly impact quality of life.

  • Physiotherapists support mobility, strength, and balance—crucial for fall prevention.
  • Occupational therapists help residents maintain independence in daily tasks.
  • Speech pathologists address swallowing and communication difficulties, which can reduce the risk of aspiration pneumonia and social isolation.
  • Dietitians ensure residents receive the nutrition they need to thrive, especially those with chronic conditions or complex care needs.

The Funding Gap

Despite their importance, allied health services are often the first to be reduced or removed when budgets are tight. Under the current aged care funding model, facilities are not adequately incentivised or reimbursed for providing comprehensive allied health care. The Australian National Aged Care Classification (AN-ACC) funding model, introduced in 2022, replaced the previous ACFI system but continues to fall short in prioritising rehabilitative care.

Many facilities rely on minimal allied health hours per resident per week — often less than 15 minutes — which is insufficient for meaningful intervention or prevention.

Key Issues:

  • Lack of dedicated funding streams for allied health services.
  • Staffing shortages, made worse by poor remuneration and job insecurity.
  • Increased demand from a growing, ageing population with complex health needs.
  • Policy gaps that prioritise nursing and personal care over preventative and restorative services.

The Impact on Residents

The consequences of underfunding are real and immediate:

  • Residents miss out on preventive care, increasing their risk of falls, hospitalisation, and loss of independence.
  • Pain goes unmanaged without regular physiotherapy input.
  • Reduced mobility leads to isolation, pressure injuries, and higher care needs.
  • Nutritional decline due to lack of dietetic support contributes to frailty and infection risk.
  • Poor swallowing management can result in choking, aspiration, and avoidable deaths.

A Systemic Issue, Not a Facility Choice

It’s important to recognise that most aged care providers are doing their best within a broken system. Under-resourced and overburdened, many facilities are forced to choose between basic care delivery and broader therapeutic supports. This is not a matter of negligence — it’s a consequence of flawed policy and inadequate investment.

The Case for Reform

If the aged care sector is serious about person-centred, holistic care, then allied health services must be central to the funding and planning conversation. Reform should include:

  • Dedicated funding for allied health roles in aged care settings.
  • Minimum staffing requirements for physiotherapists and other allied health professionals.
  • Greater investment in community and residential rehabilitation services.
  • Incentives for allied health professionals to work in aged care, including training, career development, and better pay.

Conclusion

Allied health care in aged care isn’t a luxury — it’s a necessity. Without it, we risk turning aged care facilities into passive, custodial institutions, rather than environments that support older adults to live with dignity, independence, and purpose.

The lack of funding for physiotherapy and allied health services is not just a budget issue. It’s a human rights issue.

“It’s time for a care model that values prevention, supports wellbeing, and funds allied health as a core pillar of aged care — not an afterthought“.

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We founded ACRS with a vision to provide Australian seniors within Perth metropolitan areas a much needed, effective, rehabilitation focussed and affordable Physiotherapy and Allied Health Services within a residential aged care facility and at their own homes. We are proudly Western Australian-based, delivering local aged care health services directly into our community.

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