Solving the aged care crisis with a tech solution
The federal government and opposition recently agreed to a deal to help reduce the government’s aged care costs, but it means many aged care residents will pay more. As NSSN Human Health Theme Leader Catherine Oates Smith and University of Newcastle FASTLab Director Professor Paul Egglestone write, there is another solution to the aged care crisis: the use of sensors in the home to allow older Australians to stay at home for longer.
Australia is facing a looming crisis in aged care, driven by a rapidly growing aging population that is placing immense pressure on traditional healthcare models.
By 2057, the number of Australians aged 65 and over is expected to double, significantly increasing the demand for aged care services.
The Royal Commission into Aged Care Quality and Safety and the Australian Government Aged Care Taskforce have highlighted a looming workforce shortage and emphasised the increasing preference for ageing in place, where older Australians wish to remain in their homes rather than move to residential care facilities.
The aged care population in Australia is predicted to be several million by 2035. Image: AdobeStock
This preference for ageing in place is driven by a desire for independence and comfort, as evidenced by numerous studies and reports.
The Australian Institute of Health and Welfare reports that older Australians increasingly wish to remain in their homes and communities for as long as possible.
To accommodate this shift, the current aged care infrastructure must evolve to support home-based care solutions effectively.
Economic impact
With over 1.3 million people using aged care services in Australia in 2019-2020, and this number expected to rise, there is a significant market for innovative solutions in aged care.
The financial strain on the healthcare system is substantial, with 67 percent of aged care providers reporting operating losses in the financial year 2021-22 due to high demand and workforce shortages.
Hospital care for elderly patients is notably more expensive than home-based care, highlighting the need for more sustainable care models.
A significant proportion of the aged care population, predicted to be several million by 2035, will not be self-funded retirees but will rely on government support in the form of a full or part pension, public hospital support, and the new incarnation of the Aged Care Assessment Team packages to secure support at home for their care needs.
This reliance on government funding adds to the financial strain on public resources and emphasises the need for sustainable financial models in aged care.
Innovative financial strategies are essential for the long-term success of home-based care models.
Shared cost and risk strategies between service providers and funders are necessary to ensure the sustainability of these models beyond initial funding phases, which have often been the downfall of previous projects.
Innovation and challenges
Despite the clear benefits of home-based care, government initiatives have been slow to adopt innovative solutions.
The healthcare landscape is littered with pilot programs that failed due to a lack of sustained funding or an absence of end-user involvement in co-designing integrated care models.
If we accept the premise that innovative approaches to aged care are shifting towards patient-centric models, integrating next-generation sensors, software, machine learning, and artificial intelligence with clinical services to create a comprehensive care ecosystem to support ageing in place.
These technologies enable early intervention and reduce unnecessary hospitalisations by providing actionable data on activity levels, biometrics, and emergency situations.
What is clear is that their integration requires a human-centred design approach.
This involves designing solutions that address the complex challenges of ageing in place through collaboration with stakeholders and real-world validation.
NSSN Human Health Lead Catherine Oates Smith (left) and Professor Paul Egglestone (right). Images: supplied.
The Healthy at Home initiative
In response to the pressing need to address this 'wicked problem' and overcome the legacy of failed pilot programs, the Healthy at Home initiative has united a powerful coalition.
This alliance includes state and federal government entities, leading industry players, NSW universities, and the New South Wales Smart Sensing Network.
Together, they are developing and testing a sensor-driven care ecosystem designed to enhance the experience of Australia's ageing population in their homes—however home is defined for them.
They are working with older Australians to optimise the healthcare they receive, fully aware that validation requires comprehensive approaches integrating data collection, processing, and alerting with telehealth and clinical support systems for effective care delivery.
New legislation and digital landscape
The aged care industry is already operating on paper-thin margins.
The federal government and opposition recently agreed to a deal to help reduce the government’s aged care costs, but it also means many aged care residents will pay more.
Add to this new pressure from changes in the digital landscape, such as the introduction of an Australian digital identity, and we have a complex set of challenges for care providers to deal with—just when demand for their services is ramping up and workforce shortages are looming.
Economic analysis from commentators suggests that these changes will significantly impact the operational dynamics and financial viability of aged care providers.
Understanding and acceptance of Care Technology
Understanding the reception of care technology—some of which is currently being developed by researchers and industry partners in the Australian Research Council's 'Connected Sensors for Health' Industry Transformation Research Hub—is a crucial component of creating a holistic care ecosystem.
It's also the title of Healthy at Home's first project.
Funded by the Sydney Partnership for Health, Education, Research, and Enterprise, a survey of over 1000 older Australians and a series of one-on-one interviews are contributing to a better understanding of how technology can be effectively integrated into homes to support Australia's ageing population, ensuring that the technologies and new care models are user-centred and widely accepted.
Deploying technology in homes is one thing; determining which parameters, or combinations of them, are most effective in detecting and predicting health deterioration or adverse events is complex.
This information would enable clinicians and carers to intervene appropriately, helping to maintain an individual's independence and quality of life.
Using evidence from published literature, Meaningful Measures in the Home—the second in the series of Healthy at Home research initiatives—is working with clinicians to identify and validate a suite of measures that provide personalised information and actionable insights needed to create sensor-enabled support for our ageing population and their carers.
Collaboration for a Better Future
Innovative solutions like those proposed by Healthy at Home stand as beacons of hope in transforming aged care, but their success hinges on overcoming significant barriers and securing sustained support from all involved stakeholders.
However, it is essential that we address these challenges, embracing new technology and different care models, if we are to create a future where older Australians can age with dignity and receive the care they deserve in the comfort of their own homes.
Catherine Oates Smith and Professor Paul Egglestone will be speaking about the Healthy@Home initiative at the NSSN’s 3rd Ageing Forum at NSW Parliament House on 22 November.