Hard work, dedication needed for care of elderly

• Source: Global Times
• [20:51 December 07 2009]
• Comments

Editor's Note:

As China's population grays, the elder care industry, traditionally small in a country where the aged are usually cared for directly by their children, is growing. The following is an interview by Global Times (GT) reporter Wang Yuan with Zhang Yan (Zhang), deputy secretary-general of Tianjin-based Hetong Senior Citizen Welfare Association, and Ninie Wang (Wang), CEO of Beijing-based Pinetree Senior Care Services Co Ltd, on the opportunities and difficulties of providing suitable care.

GT: What role can non-governmental agencies play in an elder care industry that was hitherto dominated by the government?

Zhang: Take our agency, Hetong. All the elderly people living in our seven old folks homes are no longer able to look after themselves. We choose to accept only this kind of elderly people not only because we possess the skills of long-term care, but also because there is heavy demand.

In most large Chinese cities, it is very difficult for poorer elders to enter State-owned homes as the preferred clientele is rich people or retired officials.

More importantly, State-owned old folks homes do not accept those who cannot take care of themselves. These homes generally have luxury facilities like swimming pools and fitness centers. They are only suitable for healthy elderly people.

Wang: Due to China's economic limits, the number of existing old folks homes in the country is not enough. This year, over 8 million beds in old folks homes are needed in China, but there are only slightly over 2 million beds available. As the population is graying, such demand is increasing rapidly.

Building new old folks homes is costly, and it's financially impossible for the government to build enough homes in the next 10 years. Thus the government has begun to promote home-based care for the aged.

Home-based care needs different systems to provide elderly people with long-term care, including both physical care and psychological consolation. This enables seniors to maintain a relatively independent life, still get involved in the society and feel needed rather than isolated.

In this field, the government should only make policies and provide a favorable environment, and encourage the social sector to become engaged. It shouldn't operate by itself, since the government does not necessarily have enough resources or skilled personnel.

GT: Are there any favorable government policies for charitable groups and other parts of the social sector that become involved in elder care?

Wang: New favorable policies are being formulated, since existing ones are more or less impractical. For example, the government encourages people and businesses to become involved in providing elder care, but only non-profit organizations can enjoy tax relief. This is the Catch 22 of encouraging an industry and attracting investments.

Moreover, sometime it is high-level government institutions, like the General Office of the State Council, the National Committee on Aging, or the Ministry of Civil Affairs, that release favorable policies, but executive institutions, such as business administration offices and tax departments, do not have enforcement notices to follow.

The elder care industry is still in the early stage in China. It needs time for both relevant policies and market maturity to develop.

Zhang: Every year, the government invests several million yuan in every State-owned old folks home for their salaries, facilities, and utilities, and these homes do not need to pay taxes.

On the contrary, non-government agencies receive little financial support. Actually, it is dependent and destitute elderly people that really needs help.

All of Hetong's seven old folks homes charge low fees, and are not-for-profit. We set the price according to our costs.

As a rule, privately-run homes charge less than State-owned ones, but, despite heavy demand, their occupancy rate across the country does not exceed 60 percent. This is because a large number of elderly people still cannot afford this kind of care.

In many developed countries and regions, the occupancy rate is 100 percent, as their governments bear the fees for those who cannot take care of themselves. But in China, things are different.