Relational economics: investing in aged care R&D in Australia

Across OECD countries, there is a conundrum in aged care policy—how to meet societal expectations of accessible, high-quality aged care, at the same time as making aged care economically sustainable. We use a different starting point from those commonly used to integrate care provision into macroeconomic theory and policy. One of the authors of this paper co-developed the well-established framework for person-centred care (PCPF) for which there is an existing evidence base for its application in care settings. Here, we explore the implications of the PCPF for care policy. We demonstrate, through our own action research and international examples, how the PCPF when applied to the larger system, can re-establish a positive relationship between quality care and productivity through a relational economics. We make the case that such action research develops and maintains capabilities through critical social infrastructure for which greater investment in R&D is required.