News

The Care Economy Cooperative Research Centre (CRC) has welcomed the Albanese Government’s investments in health, mental health, aged care and early childhood education in the 2024-25 Federal Budget, but says there needs to be focused investment in technology and innovation in order to improve sustainability of care outcomes for Australians.

“It’s great that there’s investment in the individual sectors within the care economy, but we really need to stop thinking in siloes if we are to realise the full benefits of these investments across the whole of the care economy,” Interim CEO of the Care Economy CRC, Carmela Sergi, said.

“Australia's care economy right now can be likened to attempting to insert a CD into a streaming platform and questioning why it isn’t working --- it has become incompatible and outdated.”

“Investment in technology and innovation is critical if we are to bring the care economy into modern and contemporary practices,” Ms Sergi said.

The care economy encompasses services starting from birth (early child education and care services); to health care provided in community settings (mental health, rehabilitation), aged care, family and social services and disability care; to death (palliative care and end of life care).

“Collaboration and innovation across all of these sectors is critical to the long-term sustainability and efficiency of the entire care system – and we need to start investing in the care economy as a whole.”

“When we talk about ‘Made in Australia’, we should also consider how we can foster technology and innovation in care that is also made in Australia,” Ms Sergi said.

“To do this, we urgently need to bring together researchers, technologists, and care providers to collaboratively develop, adapt, implement, and commercialise innovative technologies, data solutions and new care models.”

Ms Sergi says the care economy faces compounding challenges including increased demand, a shortfall in skilled workers, low levels of productivity and poor technology uptake, none of which have been addressed in this year’s Federal Budget.

“We welcome the Government’s investment to establish a national digital mental health service that is free of charge and free of the need for referral. This is the type of innovation we absolutely encourage and want to see more of – right across the care economy, not just one sector at a time,” Ms Sergi said.

“If we continue to treat the care economy as individual siloes, expertise is not shared, investment is not maximised, innovation is stalled, and care participants do not always have great experiences.”

Ms Sergi said investment in collaboration across the care economy will make it more cost-effective, more productive, and more sustainable, leading to better quality outcomes for Australians and a sustainable care system that can respond to growing demand.

“We need investment in innovation to transform care so that it remains high quality and sustainable into the future.”

The Care Economy CRC is a partnership of 53 organisations across Australia – including research partners, industry partners including care service providers, technology providers and training organisations. As a CRC, it seeks to unite Australia’s care economy for the first time to co-develop, customise, implement and commercialise new technologies, data solutions and models of care. 

“The care economy creates and supports jobs, fosters innovation, and enables Australians to live well so they can work and participate in the community,” Ms Sergi said.

“It is the nation’s single biggest and fastest growing employer, with one in every seven Australians, mainly female, working in the care economy. However, it is often seen as a welfare – as a cost to the economy, instead of the economic driver it is.”

“This has led to long-standing underinvestment in translational research and innovation across the care economy that has seen it fall short of what Australians expect of effective and contemporary care services.”

By Carmela Sergi, Interim CEO

It’s so easy to take for granted the things that are always just “there and ready” when you need them.

And, it’s often only when you need them, that you realise just how important they are in that moment.

When it comes to the care sector – this could not be more true.

For most Australians, it’s not until we have a child that we think about access to early childhood education and care, and worry about early access to additional support for children with special educational needs to help them thrive.

It’s not until we have an ageing parent that we think about aged care, and worry whether or not the staff in the home are trained to support people living with dementia in a safe and culturally appropriate way.

It’s not until we or a loved one needs mental health support or disability services or become unwell that we think about whether the system is set up to provide adequate support and a seamless experience that’s not full of paperwork, barriers, and stress.

The fact is: every Australian – at one or multiple points in their life – will engage with the care economy.

Often, we think about them as individual sectors – early childhood education and care, aged care, health care, social services … but, together, they are the care economy – the wide range of services and supports that contribute to the wellbeing and development of individuals, families, and communities across Australia, every day.

In fact, the care economy is the nation’s single biggest and fastest growing employer – growing at three times the rate of national total employment. One in every seven Australians – mainly female – work in the care economy.

It is also the nation’s largest regional employer, with 39 per cent of the workforce employed in regional areas.

The care economy creates and supports jobs, fosters innovation, and enables Australians to live well so they can work and participate in the community.

Care makes other work possible.

However, despite this, and despite the important role it plays in the everyday lives of every Australian, the care economy is often seen as a welfare – as a cost to the economy, instead of the economic driver it is.

This has led to long-standing underinvestment in translational research and innovation across the care economy that has seen it fall short of what Australians expect of effective and contemporary care services.

Currently, Australia's care economy can be likened to attempting to insert a CD into a streaming platform and questioning why it isn’t working. It is incompatible.

Whilst it has served us well in the past, it must innovate for the future.

The care economy today faces numerous challenges, including major workforce shortages, increased demand, a shortfall in skilled workers, low levels of productivity, and poor technology uptake.

It is seen as and operates in siloes – as individual sectors – which means expertise is not shared, investment is not maximised, innovation is stalled, and care participants do not always have great experiences.

There is dysfunction and fragmentation across the system.

We urgently need to bring together researchers, technologists, and care providers to collaboratively develop, adapt, implement, and commercialise innovative technologies, data solutions and new care models.

In outer Melbourne, a virtual emergency department is garnering attention for its innovative model which is helping relieve pressure on the health system.

The program, which started as a small pilot at Northern Health during the COVID-19 pandemic, has offered treatment to 250,000 patients to date, seeing 500 patients a day and operating 24/7.

It has recently received funding from the Victorian Government, enabling it to double its capacity and see 1000 patients a day from across the state, via a virtual ED.

This sort of innovation and use of technology is just one example of how we can deliver better care.

Collaboration is key.

It is how we will see innovation scaled up quickly, solutions shared across care sectors, and a more skilled and sustainable care system and workforce.

The Care Economy Co-operative Research Centre (CRC) brings together 53 organisations – research partners, industry partners including care service providers, technology providers and training organisations, State Governments, a Union, regulatory agencies, and other key stakeholders – which seek to unite Australia’s care economy for the first time, to deliver better outcomes for Australians.

Together, the capabilities and opportunities offered by a Care Economy CRC extend far beyond the scope of any single provider or sector.

The Care Economy CRC has just lodged a bid for funding under the Commonwealth Government’s Co-operative Research Centre Grants program.

With three streams of research – technology solutions, data solutions and workforce innovation – the Care Economy CRC will play a pivotal role in improving care provision across the country.

Our modelling shows a $35 million investment over 10 years would in turn deliver more than $1.4 billion in direct benefits on a risk-adjusted basis – a return of forty times.

With this funding, the Care Economy CRC will support the delivery of value-based care and help to ensure the long-term sustainability and affordability of Australia’s health and broader care system.

In particular, our work will deliver benefits to rural and regional areas where care workforce shortages are severely limiting availability of services and access to workforce training and mentoring can be limited.

Australia’s care economy needs to be prioritised, and collaboration invested in.

Because, knowing your ageing parents are receiving the best care possible at their home; feeling assured your child is being looked after well; knowing your support worker is appropriately skilled; having innovative solutions to make it easier to access care when you need it … these are the things we don’t take for granted.