A meeting in Warrnambool of aged and community care centres across the south-west and Wimmera regions called for policy commitments to include urgent reforms in the funding system.

They warned of soaring aged care numbers in the next two decades as the first of the baby boomer generation turn 65 this year, scarcity of workers and GPs and inadequate infrastructure.

"We are facing the perfect storm," said Gerard Mansour, the chief executive of Aged and Community Care Victoria, which represents more than 90 per cent of the industry.

"Small rural centres are at that point now.

"Funding models are based on big occupancy, but there's a critical need in towns with under 5000-6000 population.

"This is the turning year with baby boomers starting to turn 65.

"There's a five-year gap between planning and construction. We should be in construction phase now."

Mr Mansour said the three priorities were to address the workforce shortage, more government investment and better interface between hospitals and aged care.

"Where are we going to get the trained staff as the percentage of aged population increases," he asked..

"Older people don't want to be cared for by a robot."

Cobden District Health chief executive Jeannine Creely and Mortlake's Abbeyfield House chief executive Doug Parker told of how they relied on donations and dipped into cash reserves every year to cover operating costs.

"Our buildings are getting older and our reserves are dwindling," Ms Creely said.

"Wages and other costs are rising faster than the government grants and we have to be very frugal."

Mr Parker said it was becoming increasingly difficult to retain staff particularly as the award wage for private not-for-profit operations was 12 per cent lower than the public sector.

"We'd love to be able to pay our staff more, but we are only funded at that level," he said.

"Our staff are very dedicated and we rely on their generosity.

"We start every year with a deficit budget."

Yesterday's meeting unanimously backed a resolution calling for:

- an immediate interim funding to bridge the gap

- specific funding support for rural and remote services,

- flexibile payment options for accommodation

- removal of the distinction between high and low care

- creation of one community care program and

- a long-term reform agenda.