Supplementary pricing inquiry needs a dose of grounded data  – Juniper’s CEO Russell Bricknell faces WA’s reality to support required reform

With the pricing inquiry announcement, the government has opened the doors for feedback to fuel reform. Within the space of one month, provider advocates, leaders and experts have the opportunity to present their cases for change. The need for sector-led, reality-filled data, is so overtly warranted, in trying to shape policy that is effective and tailoured to the desperate results needed, stratospheric may just be the word to use. Juniper’s Russell Bricknell has been campaigning state and federal government to see the reality on the ground in WA, largely reflected in other states as well. The need for urgent policy change to support the rising demand in RAC and home care is here, now. Policy must be shaped by those experiencing the crisis first hand, with the substance of data to highlight the breadth and urgency that warrants novel reform.

Multi-faceted layers

The move to set up an inquiry is welcomed. Bricknell notes, “This week’s review is timely and consistent with Federal Government’s commitments and the requirements of the new Aged Care Act.” However the interconnected nature of what the inquiry is set to unpack means that multi-faceted layers of consequence need to be addressed. This will take time, time that many vulnerable seniors do not have.

Lending insight into this review is critical from a sector leadership standpoint. “Juniper will be contributing a response to the Accommodation Pricing Review”, Bricknell shares.

“We plan to provide solutions of the ways the Accommodation Supplement can be increased, along with a number of other incentives and levers available to Government to support investment and stimulate construction by the sector.”

Complicated issues require in-depth assessment

With the recent coverage of state health ministers loudly vocalising their unhappiness at the crisis in public hospitals, leading quickly into focusing on issues of seniors in beds without anywhere to go, Minister Butler has repeatedly commented that the aged care sector is not building beds fast enough. While the rate of bed builds is far below the majority of projections, limiting this to a sector issue is neither helpful nor realistic. 

Rapid fire government or sector messaging does not have the substance to guide effective reform. Complicated issues required in-depth assessment of complicated factors. Bricknell highlights the relationship of supplement amounts to provider profit margins when it comes to build possibility, “it is critical we focus on the Accommodation Supplement which has not increased to reflect construction cost increases for more than ten years.”

“It [supplement pricing] does not meet the cost of capital to attract investment or loans to build new, resulting in a disincentive for providers to build residential beds to support concessional customers – those with low incomes and few assets.”

Siloed blame games and messaging does not inch towards the solutions both the sector and nation require, worse yet, those with lowest means continue to be left behind. Assessing how to respond is not merely a policy or financial complexity but of nation morality.

“This means that not only are we not able to meet demand for residential aged care beds, but the system as it stands is leaving some of our most vulnerable behind.”

Urgency of solves

Concern remains among industry leaders as to the timeline of the review. The issues present and straining the sector now are having grievous implications, “we need to take action immediately to stimulate construction, with building and bringing new beds online taking five to seven years”, Bricknell states.

“Modelling for the WA Department of Health by EY shows the greater Perth region will need up to 2,800 additional aged care beds within four years, meaning 15 to 30 new residential aged care homes.”

“In a system at capacity, for example Juniper currently has as little as 12 available beds in the metropolitan area, there simply isn’t enough beds being built in Western Australia.”

The impact is current and should be seen and framed not in just how it is affecting seniors, but all demographics of Australia, with children and grandchildren being impacted in ability to work, “The current shortage of residential aged care beds is having a real impact on older people, placing huge pressure on their families, and more widely on the Western Australia’s hospital system.”

Compounding effects

The consequential effects of lack of beds, and support in home care packages, is particularly felt in the newest ambulance ramping figures, “Figures released Wednesday (October 1, 2025) show the third consecutive month of more than 7000 hours of St John WA ambulances ramped outside hospitals.”

The human cost to seniors, and financially to the tax-payer, with seniors unable to be discharged is steep and un-sustainable, “July figures show older West Australians are waiting an average of 10 extra days in hospital and 16 additional days for an aged care placement. The situation is considerably worse in regional areas.”

“Meeting demand for residential aged care beds is one piece in the puzzle of getting our seniors out of hospitals and reducing hospital ramping times.”

Multiple puzzle pieces

It is from providers, who are hearing the stories of seniors and loved ones, who are well-versed in the data, that hard-hitting and impactful submissions can be made to support effective policy reform. As Bricknell notes, providing an incentivised and financially viable environment for increased bed builds is one part of the puzzle. There are many others. 

A colossal other piece, championed by Bricknell and numerous other leaders, advocates and independent senators, is the need for a significant re-assessment of home care package releases, pricing models and scheme structure. 

Facilitating and crafting a scheme whereby both seniors are able to stay at home for longer, stay healthier and the scheme itself is financially sustainable, therein lies significant results in minimising the horrors of seniors stuck in hospital. State health ministers are increasingly frustrated at the repercussions of delayed treatment time across state hospitals, improvement in wait-times, service quality and cost-effective reduction in health costs is paramount for all age-groups. At over $3000 a day to be treated in a WA hospital, the provision of a home care package can start to be seen not as a financial burden but as an investment for the nation at large.

Profits and builds

In an attitude and tone shift that has been a long time in coming, quality aged care providers are starting to articulate that profits are good, and importantly, critical to the building of beds. Compliance must remain to facilitate the identification of poor-performers, as well as public policy needing to support those of quality to expand their operations to meet demand.

“The sector needs incentives designed to lower construction costs, especially here in Western Australia with higher construction costs between $570,000 and $620,000 per bed.” Profit, supported by dynamic supplement funding models, and assistance to compete in an extremely hot development market, is arguably needed if policy is to meet the realistic environment of Australian land and build costs.

Bricknell highlights that, without undue burden on the tax-payer and future generations, public policy may pivot to reform in loans to elevate the possibility of build rates, “one solution is low or zero real interest loan schemes to reduce the cost of capital for providers.”

In a set of crises that are overlayed and interconnected, industry advocates and leaders must steep submissions in data and grounded reality to guide reform to be most effective and timely.