Media

7 core beliefs in the future of the sector dismissed

Nicole Brooke - Tuesday, June 07, 2016

It has become evident in the Aged Care, Community Care, Disability and Retirement Living Sector that MANY organisations are just not planning let alone STRATEGISING!  

Core belief systems SOME organisations believe:

  • The sector is predictable and stable;
  • Clients will remain faithful to you because it's easier in the end;
  • The government will keep regulating numbers of packages / beds and subsidise these;
  • Ratios of care will become embedded in some way to care provision in the sectors;
  • MyAgedCare will ultimately (when they work out the BUGS and glitches) will provide source of leads; and
  • Administrative costs are ok at the moment;
  • Accreditation will drive compliance.

The reality of our future:

  • You need a system to KNOW in detail and continuously monitor your environment (including clients needs and expectations). Engage your clients in your journey of change;
  • Your systems need to have flexible and highly automated systems to be able to continuously vary your approach in order to change to the environment and renew organisational competitive advantage. Implement electronic solutions to de-risk your business and give you timely information to make more informed decisions. You will need a flexible cloud-based platform / software to get immediate feedback from clients;
  • Administrative costs need to no more than 10% (I know community and disability have already realised this but residential aged care is operating at 40+% and not prepared for CDC and these changes). You need to free up resources in order to thrive and prepare for the new future;
  • You will need a strong marketing and lead generation strategy.  Big isn't necessarily better.  Identify your unique value proposition and drive marketing to re-brand and change;
  • Ratios will be too difficult in residential as we can't fund current ratios with current ACFI funding.  However, with private and top up care/service items, there's every chance that clients will be paying for RN/ EN/Physio / Psychologist services on top of their base service provision.  This is already done in CDC.
  • The Government will only fund a small proportion of care and services in this sector in the future.  It will become increasingly user based.  But are you prepared for 3-5 aged care/retirement and group residential structures popping up next door to your services and still being able to sustain your EBITDA?;
  • Accreditation will need to be around as this is a very frail and high risk population.  However, Accreditation is only a baseline indicator and the community will quickly realise that they expect more  Retirement Living will in the long term become regulated because of the increasing risks evident in this area;

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