Occupancy how to

We get many calls from people seeking a “quick fix” or some “training” thinking that the answer lies in a quick sales workshop at the cheapest possible price. Ideal regularly works with #agedcare providers looking to improve their business performance, and we get great results. But there is no quick fix. And every unoccupied bed is costing the business a lot of money.

Would you like to know what works?

While I can genuinely say every client IS different, we do have a structured approach to assisting organisations improve their position.

Step 1 – we critically look at the current situation. This includes an independent review which is essential to removing any internal bias.

The metrics that we measure have been developed over the past ten years and consistently demonstrate the important factors that a provider or new entrant should be looking at. We recommend that you identify the right catchment, review the demographic profile of the catchment, the actual supply and demand rather than government planning ratios, financial metrics, undertake a competitive analysis using a proven assessment methodology, pricing, …

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ACFA 7th annual report

On July 4 the Aged Care Financing Authority (ACFA) released it’s seventh Report on Funding and Financing in the Aged Care Sector[1].

If you don’t have time to read the full report, The Ideal Consultancy provides a snapshot of some of the information within the report. The information presented relates to FY 2017-18 and generally compares with the previous financial year unless otherwise stated.

Residential Aged Care

There were 886 Approved Providers, down from 902 Approved Providers in 2016-17, running 207,142 operational places compared to 200,689 the previous year.

There are 31.603 provisional places yet to be made operational and 7,802 places offline. 1,371 places had been surrendered or lapsed.

Of all places 80% are single rooms with an ensuite, up from 77% in the previous year.

Size

Size of Provider % of Providers % of all PLaces 1 Facility 63% 21% 2-6 Facilities 28% 23% 7-19 Facilities 7% 25% 20+ Facilities 2% 31%

 

occupancy and Access

Occupancy continues to decline with a national average of 90.3% against 91.8% in 2016-17 and 92.4% in 2015-16.

In relation …

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ACRC – Bringing together ‘ordinary people’

From the desk of Louise Greene.

Last Friday morning I took the opportunity, along with my Ideal Co-Director Fiona Somerville, to attend the Aged Care Royal Commission public session in Maidstone (metropolitan Melbourne). So along with 300 other people I made my way to a reception centre to hear 20 people make public submissions about their experiences of and aspirations for the aged care system. Heart wrenching stuff to listen to service users and family members talk about their experiences – the room was silent.

The need for aged care services can happen to any family at any time – it is a socially equalising experience. I had a similar feeling to when I attended jury duty where ’ordinary people’ are randomly selected from the electoral roll and brought together.

So many of the experiences described reflected my experience of the aged care system over the ten-year period in caring for my mother. The frustration of dealing with the system, constantly changing care staff, fee complexity and inefficiency of the home care package providers. The incredible shortage of staff in …

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Proposed aged care funding model summarised

Report and consultations open

On Friday 15 March the Department of Health released a report on the Resource Utilisation and Classification Study (RUCS) which was undertaken by The Australian Health Services Research Institute (AHSRI) at the University of Wollongong in December 2018[1]. The purpose of the study was to determine the characteristics of residents that drive residential care costs, and use this information to inform the government’s consideration of future reform options. It proposes a new Australian National Aged Care Classification (AN-ACC).

The department is now seeking targeted feedback on proposed residential aged care funding reform options. Consultation on the proposed funding model closes 31 May 2019. To view or download the consultation paper or provide a submission to this go to the department’s consultation hub.

Ideal provides a high level summary of the intentions and recommendations.

In considering the results and recommendations included in “Report Six: AN‐ACC: A national classification and funding model for residential aged care: synthesis and consolidated recommendations”, it is necessary to distinguish between three key ideas:

Cost

The cost of care for people …

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aged care business as usual

While we are waiting for the Aged Care Royal Commission (the Royal Commission) hearings to commence again next week we have taken some time to reflect on the enormous effort some providers have put in to ensure it is “business as usual.”

One of our clients had an extremely busy December and beginning of January preparing its submission for the Royal Commission. Prior to this the organisation had noted a softening in occupancy across the portfolio, and while many providers have been reporting this in metropolitan areas, this organisation decided to do something about it.

Ideal was engaged to analyse each home and work collaboratively to develop an optimal solution to increase occupancy.

With hindsight there were a number of mitigating factors impacting some or all of the sites; some of which included:

Change in personnel at some sites Lack of a centralised repository of key contacts Improved level of amenity at local competitors Increased marketing activity by local competitors Change in pricing Varying degrees of outbound contact Local presentation varied greatly – some homes, while older, were immaculately presented …

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Show me the $ – Seven things providers should be doing right now!

Residential aged care providers are faced with wafer thin and diminishing margins; and in some cases losses.

Every facility must maximise each revenue opportunity and avoid revenue leakage to be sustainable. Diligent ongoing scrutiny, accessing independent specialist advice and ensuring staff have the relevant knowledge and skill-base is mandatory for your business to survive and succeed.

Make sure you leverage expertise from all levels of the business and to look at each facility in its own right to achieve optimal revenue outcome.

Seven things providers should be doing right now!

Have an independent accommodation market appraisal done

There is a market for everyone; you just need to find your niche. An independent market appraisal will determine optimal accommodation price for your service offering in its market.

Accommodation is often undervalued and under-priced. Validate the accommodation offering and identify the appropriate price point in the market. Seek opportunities to increase the value of the accommodation.

Use external independent expertise to do this and update this quarterly, or six-monthly at a minimum.

Identify your optimal financial profile for resident mix

Based …

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meeting the consumer perspective of quality in aged care

Consumer focused surveys and feedback consistently show quality of care and quality staffing are most valued by consumers and their families when looking for care. In a world where consumers are bombarded with information and jargon how do providers engage with consumers and families and stand apart from other providers?

Consumer Experience Reports show the benefits of engaged models that address consumer needs and preferences and meet consumer expectations of quality.

Offering service and care models that consumers/families can understand and describing these in language that resonates with consumers and families sets services apart and provides an ongoing competitive advantage

Consumer focused surveys and feedback consistently show that quality of care and quality staffing are most valued by consumers and their families when looking for care; the second most valued aspect is promoting resident independence and well-being. The most powerful source of information is ‘word of mouth’ from friends, family, facility staff and current residents. Accreditation status is ranked as the most important attribute when choosing a facility; the second highest ranked attribute is food.

In a world where consumers …

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strengthening your business

Not all aged care homes are the same

When we look at results of surveys such as the Stewart Brown Aged Care Financial Performance Survey Sector Report it is make or break time for many in the industry. While there is currently plenty of commentary on the poor results by numbers it is important to look at ways in which an organisation can positively impact its performance.

While there has been recent negative press about aged care, the majority of homes do an absolutely amazing job. Every. Single. Day.

In aged care we are not really good at letting the world know about the difference we make in people’s lives. Making sure potential customers understand the difference between you and “Shady Pines” down the road is critical.

five key steps

In order to best put your organisation or service forward there a some critical steps to ensure you get this right.

Keep up to date with your competition

This is not just a matter of looking at prices on their website but really understanding what your competition is up to.

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oh what a feeling!

Delivering a successful turnaround project is a great feeling!

Mid 2018 we got the SOS from a provider. The Agency had been to one of their homes and things were not great. The provider was disappointed, shocked and upset! It is a dark hour in any business.

Like any tough situation the hardest part is taking the first step. Carefully reviewing the current state of the business, identifying causative factors, developing an action plan, bringing people to address issues, documenting and monitoring progress and continuous review are the tried and true method of achieving change. In summary implementing a continuous improvement framework.

The most urgent tasks were to ensure residents were safe (they were) and to get staff ‘on board’. There is no denying it the first weeks were tough. For things to improve honest and hard conversations were needed and tough actions had to be taken. Key staff needed to be supported and shown how to implement continuous improvement and they needed to be empowered to take charge and make change.

In any ‘turnaround’ project there is a phase …

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The Aged Care Royal Commission and Beyond

The terms of reference for the Royal Commission in to Aged Care have been established, The Honourable Justice Joseph McGrath and Ms Lynelle Briggs AO have been appointed Commissioners. Temporary recruitment is underway for support staff predominantly in Adelaide and a small number nationally.

Royal Commissions run on tight timeframes and an interim report is expected by 31 October 2019. Requests for information from providers may start as early as December 2018 and January 2019. It will pay to be prepared.

The scope of the Royal Commission is vast and the key focus is on the conduct of Approved Providers. There will be many stories that will be hard to hear and the media will take great interest in an organisation where issues are highlighted.

Based on previous Royal Commissions no doubt consumer interest will be high and thousands of submissions will be provided to the Royal Commission.  Consumers are quite simply demanding more and the public will be closely watching as information comes to light.

Understanding the quality of care provided and constantly challenging whether this is adequate or …

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