The sufferings of dementia patients in Australia have been compounded by inefficiency, indifference and inability of the existing health care system to deal with the rising cases of Alzheimer's Diseases in the country.

According to the latest report issued Monday by Alzheimer's Australia, "mistreatment, delayed diagnosis, confusion, and a lack of compassion or understanding from hospital and aged care home staff," were mostly what characterised the ordeal of Aussies and their families in battling the disease.

The report largely confirmed the assessment issued last year by the Productivity Commission that the country's home and residential care system sorely needed reforms, ABC said on Monday.

What the report contains, according to Alzheimer's Australia chief executive Glenn Rees, were the sentiments aired by more than a thousand dementia patients and their families, who participated with the series of consultations conducted by the advocacy group.

Rees admitted that the report disheartened him, giving special attention to the Indigenous patients or those belonging to the so-called minority groups, who were made to bear undue awful care services.

Since these particular patients do not speak fluent English, "they have particular problems finding doctors who understand their needs or can deal with them in their own languages, and of course language and cultural understanding is a problem across the range of services," Rees said.

"Really there's a whole litany of problems, from delays in diagnosis, failure to refer to services by the general practitioners, poor quality residential care and staff in hospitals who don't seem to understand dementia," the group chief told ABC.

In order to correct the troubling situation, the report strongly recommended for federal authorities to allocate $500 million in the upcoming budget, the meat of which, Rees said, will be used to upgrade care facilities and services.

Also, a big portion of the proposed amount will be earmarked to expand on the current knowledge database about Alzheimer's, Rees said.

"Over $200 million of our $500 million, if the Government responds positively, would go into dementia research."

He acknowledged that the authorities may be hard up on cash at this time "so we've focused it on things that really matter - a timely diagnosis, investing in dementia behaviour advisory services, so that family carers and staff in residential care have access to the best advice available on how to relate to people with behavioural difficulties."

On its part, the government admitted that the report had affirmed the dismal conditions that dementia patients have had to endure under the in-placed care system in Australia but it declined to commit for now on granting the war chest that Alzheimer's Australia had asked for.

However, Ageing and Mental Health Minister Mark Butler said on Monday that he is committed to institute improvements in the system and will definitely use the report in putting together his recommendations for the national government.

Butler added though that he cannot provide for now specific timetable on when and how the overhauls will be implemented, merely suggesting that the program now occupies a priority slot in Gillard government.

For now, Butler told ABC that his focus is "getting better diagnosis in the community for people so that they can make arrangements as soon as they possibly can as a family."

"Getting better arrangements in hospital systems, getting better research, but most importantly perhaps, making sure that the aged care system is built around the needs of people living with dementia."