# Aged Care Association Rejects Report on Public Funding Shift

> Aged Care Association defends private sector's role in New Zealand's aged care system after report claims 80% of public health funding went to private entities.
- Title: Aged Care Association Rejects Report on Public Funding Shift
- Summary: Aged Care Association defends private sector's role in New Zealand's aged care system after report claims 80% of public health funding went to private…
- Keywords: aged care, public funding, private sector, residential care, new zealand, healthcare, politics, news, Aged, Care, Association, Rejects
- Source: RNZ — https://rnz.co.nz/news/health/2197814/aged-care-association-hits-back-at-report-on-public-money-going-to-private-sector
- Author: RNZ | Te Reo Irirangi o Aotearoa
- Published: 2026-10-27T17:04:16+00:00
- Read time: 1 min
- Topics: aged care, public funding, private sector, residential care, new zealand, healthcare, politics, news
## Report Criticizes Public Funding Shift
The report claimed 80 percent of the increase in public health funding from the government over the past three years had gone to the private sector, accounting for 76 percent of aged residential care revenue.
## Aged Care Association Response
The Aged Care Association says the private sector is crucial to the ongoing supply of aged care beds after a scathing report criticized the amount of public money going to private entities.
## Sector Ownership and Scale
The sector consists of about 690 aged residential care facilities providing about 43,300 beds, with 60 percent of providers being charities or small owner-operators.
## Funding Shortfall for Expansion
The Aged Care Association states that building 66,500 beds by 2048 would cost the government about $26.6 billion, requiring massive investment to overhaul the 80-year-old system.
## Key Challenge for Seniors
Many seniors face higher bed prices due to deferred maintenance costs, with some providers charging extra fees to cover ongoing expenses.
## Key takeaway

The Aged Care Association argues private providers are essential for aged care beds and that government funding would require $26.6 billion to build 66,500 beds by 2048.