identify, adapt and deliver

The theme of this year’s ACSA Conference is Identify, Adapt and Deliver describes how Australian providers need to respond to the continually changing aged care environment.

To thrive in the consumer focused contestable market environment providers need to focus on the consumer experience and re-think their care model, service delivery and consumer engagement from the consumer perspective.

What do consumers want?

The first step is to redefine your offering from a consumer perspective.

Ideal has surveyed potential and current consumers. They want to be in a ‘safe, happy and welcoming environment’ and they want:

Quality care To maintain their independence Quality staffing.

The most valued sources of information are people who currently live or have lived in the home and information from hospital staff, discharge planners and social workers. Information directly from staff at the home and from family and friends is more important and influential than government websites or the home’s website.

When they consider a home the most important factors ranked in order are the quality of food and the dining experience, accreditation status, the range of activities …

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aged care non compliances and sanctions double

The rate of non-compliance and sanctions has more than doubled between July 1 2017 and 21 August 2018 when compared to the 2016/7 financial year.  This is a very challenging time and the implications for those services, the older people in care and the broader sector are significant. Providers need to be actively identifying potential risks of non-compliance and act swiftly to address issues.

Metric 20 Jun 16

to 30 Jun 17 1 Jul ‘7

to  21 Aug 18 Notices of non-compliance issued 71 163 Sanctions imposed 13 28

Causative factors

Some may consider the increase in non-compliance and sanctions to be related to increased scrutiny by the Australian Aged Care Accreditation Agency in response to the Carnell Patterson Review (2017).

It is important to consider other broader sector, organisational and service related factors that place significant pressures on an organisation and subsequently increase the risk of non-compliance. These factors include:

Impact of industry consolidation resulting in change of ownership Changes in organisational structure, reporting and processes Workforce changes Impact of retirement of the generation of highly experienced …

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residential aged care occupancy

introduction

In 2017 there were 902 organisations operating 2,672 services in residential aged care, with an average occupancy rate of 92%. The financial impact of ongoing low occupancy for any provider is not sustainable. Providers are potentially foregoing considerable revenue. In the following scenario the modeled difference between 52 occupied beds and 60 occupied beds is $2,455 per day; equating to close to $900,000 in lost revenue per year.

Revenue type Daily revenue per resident Daily revenue

52 residents Daily revenue 60 residents Difference (LOST) per day Difference (LOST) per Annum ACFI[1] $172.54 $10,352 $12,007 $1,654.60 $603,929 Daily Fee $50.16 $3,010 $3,511 $501.40 $183,011 RAD / DAP / Supported payment[2] $29.91 $1,795 $2,094 $299.40 $109,281 Total $252.61 $15,157 $17,612 $2,455.40 $896,221

Our approach

The Ideal Consultancy consistently demonstrates that the occupancy and financial position of a facility can be improved through the Ideal Occupancy Program. This is achieved by:

Developing and implementing a robust market engagement strategy Improving facility presentation Improving staff skills in customer engagement Improving key staff skills in sales and marketing Providing …

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2018-19 acar opens

it’s that time again

This update highlights some of the elements related to the residential aged care application process. The forms are streamlined however the process is more competitive than it has ever been. The impetus is to be able to evidence need and demonstrate the compelling reasons your organisation and service is best met to serve the needs of our elder Australians. In the 2018-19 ACAR, nationally, applicants can apply for:

13,500 residential care places 775 short-term restorative care (STRC) places up to $60 million in capital grants

The indicative timeframe:

Opens 2 July 2018 Closes 11.59PM AEST 10 August 2018 Results expected April 2019

Priority, but no guarantees

The department will give priority to assessing and allocating places to suitable applications for residential care places to services located in regional, rural and remote areas. You are not however guaranteed places simply because you are located in a regional, rural or remote area.

The level to which applications are sought will now be given a category of prioritisation, from Category 1 (highest priority) down to Category 6 (lowest priority).

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ACAR to open July 2

The following provides a short summary of communication from the Department of Health regarding this years’ Aged Care Approvals Round (ACAR)[1]. The 2018-19 ACAR will open on 2 July 2018 and close 10 August 2018; and approximately eight months later the results will be announced. The information below is related to residential aged care places only; more information on Short Term Restorative Care places and Capital Grants can be found on the department’s website.

Distribution and targeting information will be available on the department’s website when the ACAR opens, however in the meantime the expected residential aged care places available for allocation in each state and territory are as follows:

Allocation year NSW VIC QLD WA SA TAS ACT NT Total 2018-19 3,349 1,415 4,289 3,295 431 212 360 149 13,500

Please note: the department does not guarantee that the exact number of places will be allocated to each state and territory.  The final allocation of places will reflect the best use of all of the available places, based upon the applications received and outcomes of the overall …

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2018 aged care approvals round (ACAR)

The Department of Health has released a Question and Answer Guide in anticipation of the upcoming Aged Care Approvals Round (ACAR). The following is a summary of some of the pertinent points.

There will be an ACAR announced soon. The application period is open for six weeks and the Department will take around eight months to assess applications. There will be:

13,500 residential aged care places nationally 775 STRC places $60 million in capital grants

Previous ACAR

The 2016-17 ACAR was the most competitive on record with providers applying for a total of 45,053 places. There was an allocation of 9,911 new residential aged care places, 475 STRC and $64 million in capital grant funding.

Ideal contributed to the success of close to 15% of all places allocated in the 2016-17 ACAR.

Priorities

The number of new places made available for allocation will be influenced by:

the aged care provision ratio population projections, and current levels of service provision, including newly allocated places not yet operational

The primary consideration of the assessment and recommendation processes is to ensure, where …

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the devil wears….packages??

Amanda Priestly (The Devil Wears Prada): “Florals? For Spring?… Groundbreaking.”

Naturally we welcome the announcement of 14,000 additional Home Care Packages over the next four years, particularly at Level Four, however we are certainly not alone in stating that for aged services this is not ground breaking news. There is a lot more to be done.

The announcement as one of the budget showstoppers for aged care is underwhelming; and frankly alarming knowing that already 10,000 people a month are assessed by an ACAT for aged services and we currently have 105,000 people waiting for a home care package. Given the ageing demographic profile in Australia this is expected to increase exponentially over the next few years. We eagerly await the release of the additional 74,000 packages in 2021-22.

There however remains much opportunity for home based service provision; there is always an upside and opportunity for smart businesses.

In order to make sure you are in the best position to meet the needs of your market now is the perfect time to review your strategy and develop a plan …

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budget 2018: moving towards a consumer demand driven system – baby steps

The Legislated Review of Aged Care 2017 – the Tune Review, described that “there is a broad consensus shared by government and sector stakeholders that aged care requires further reform to become a more consumer-centred system. This includes orienting care and the supply of different care types around the demands of consumers, and giving consumers greater choice and control.”

Responding to this, buried on page 147 of 472 in the Federal Budget Health portfolio statement of May 2018, the Government announced that it ‘provides in-principle support for the transition of residential places to the consumer, pending a detailed analysis of the impacts of such a model.’ Reported by Rick Morton in the Australian newspaper today ‘the Government has allocated $300,000 to conduct an ‘analysis’  of the impact of unshackling residential aged care funding from providers and giving it straight to the people’.

This is a baby step in the reform process. The turbulence and disruption experienced during implementation of a consumer focused home care model and the transition of disability services to the NDIS model both provide valuable information for …

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accommodation pricing review

Three years on from first publishing accommodation charges and astonishingly many providers have not reviewed their pricing 

RAD pricing should be reviewed regularly.

In other instances we have also observed providers wildly fluctuate RAD pricing in order to determine their market position. This causes a level of distrust for consumers so it is important to get it right.

The introduction of Additional Services has proven complex – Additional Services, when well articulated and in line with what consumers want, can definitely work in some areas but not others.

Ideal can independently pin point your market and opportunities to maximise revenue through competitive pricing.

Don’t just listen to us; here is what one of our clients has to say about our work:

“… detailed assessments have helped us better understand our market position (ranking) in each of our catchment areas, who our best competitors are, recommended room pricing levels, where we need to upgrade our accommodation offering in comparison to our main competitors and the potential room price up upside of an accommodation upgrade. … able to refine their assessments to the …

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home sweet home

HOME SWEET HOME The goal of older Australians is to remain living in the place they love and feel comfortable in – their home. The aged care reforms aim to support this by increasing the provision of Home Care Packages (HCP) and home based supports.

A GROWING SECTOR Australia’s ageing population and the policy reforms transitioning home and community based supports to a consumer focused market driven sector have created a rapid increase in the number of businesses that have become Approved Providers of HCPs. Strong interest continues. Motivation for providing HCPs varies. With over 100,000 people currently on the waiting list for a HCP there is strong demand for services creating the opportunity to establish a new business. For some businesses it diversifies their revenue stream, for others it ensures continuity of care for their client base and for others it may fulfil a commitment to organisational values.

INCREASED CHOICE FOR CONSUMERS The number of HCP providers has grown rapidly. In June 2016 there were 496 Approved HCP Providers; today there are over 800. This growth reflects the attractiveness …

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