17/08/2026
Today's release of 'A place to grow old: Securing the future of aged care' marks a genuinely significant moment for our home care sector.
It clarifies what the Home and Community Health Association has been advocating for since 1993, that in-home care is the heart of healthcare, the quiet heartbeat offering some of the most cost effective investment of every taxpayer dollar. Investment here can stop the hemorrhaging cost of more expensive, more intrusive options further down the line.
It's heartwarming to see this report take in the whole picture, laying out clearly what continuing on our current path will cost us against what's possible through real reform. And it recognises something too often overlooked, the humble, largely invisible workforce delivering increasingly complex care every day, including the family carers who hold our system together.
Rather than siloing the system into isolated measures like ED numbers or GP visits, it recognises that home and community care sits at the centre of a dignified resilient healthy system, not off to the side of it. Because that's the truth of it: fund care at home, and you fund the beating heart of the whole health system, now and into the future.
From the modelling it shows that a single night in rest home care can cost about the same as a week of home care. A single night in hospital can cost about the same as a month of home care. The logic really is that simple: pull the ambulance back to the top of the cliff, put real guardrails in place, and everyone benefits, older people, families, and the wider system alike. Partnering with other parts of the aged care sector such as residential care, primary care, NGOs like Dementia NZ, Carers NZ, Hospice NZ, iwi/hapū partners, and kaumātua/kuia as cultural guides and advisors is needed.
The modelling shows that structural reform could reduce direct costs to government by more than $830 million a year by 2037/38, in 2025 dollars, compared with simply pouring more funding into the current model, and this would need an investment or a net cost to government of $168 million. That's a strong return, and a clear signal that doing nothing is the most expensive choice of all.
There's more detail to work through, more reflection to be had, but the direction is clear, and it deserves genuine cross-party commitment to keep it on the Cabinet agenda. We're ready to work alongside anyone across the wider aged care sector who wants to make sure this reform delivers, for every part of the system, and for every older New Zealander who relies on it.
Casey Costello MP Chris Hipkins MP Simeon Brown MP Sam Uffindell MP Dr Ayesha Verrall
The Ministerial Advisory Group’s independent report on aged care provides valuable insights to help guide future policy and funding decisions, Associate Health Minister Casey Costello said today.