07 September 2014
Top Tips to help you to manage the impacts of reform
Aged care in Australia is undergoing the most significant reform in a generation.
1 July 2014 heralded the start of a new era, with the major changes including:
- The elimination of the distinction between high and low care places, meaning accommodation charges now apply across all beds.
- The introduction of new means-testing approaches for residential aged care, and the establishment of annual caps.
- Creation of a range of payment methods for residents – with options to pay by a lump sum (refundable accommodation deposit), a daily accommodation payment, or a combination of both.
- Increased requirement for transparency in pricing of aged care accommodation– and the creation of a public website – www.myagedcare.gov.au - to help consumers navigate the aged care system.
- Changes to supplements – including the cancellation of the Dementia Supplement and increases to Accommodation Supplements.
For providers, understanding and managing the impacts of these reforms is vital to ensure that your service’s financial viability is protected and strengthened.
To assist you through this period of change, the Bentleys Health and Ageing team have prepared this series of “TOP Tips” in a variety of areas.
Top Tips: Treasury Management
Understanding and managing you balance sheet capital funding requirements and putting strong treasury management in place is the first fundamental step to navigating your service through reform. Read more...
Top Tips: Benchmarking
Benchmarking allows your service to gauge your areas of strength and weakness, and monitor the impacts of reform in comparison to others in the industry. In addition, benchmarking helps to drive your forecasting and future planning – so you can forge ahead with confidence in your numbers. Read more...
Top Tips: Profitability Analysis
Analysing profitability and managing the profit drivers for your service is a more straightforward process when your income and related expenses are aligned to the key business streams of accommodation, care and services. This also allows you to establish activity based costing models that will support the strategic management of your service. Read more...
Top Tips: Board Reporting
The impacts of the reforms in aged care will be a key agenda item for Board and Management meetings in the months (even years) ahead. Delivering board reports that “THINK AHEAD” is critical to ensure that your service is equipped to make strategic decisions. Read more...
Top Tips: Debtor Management
The change in funding sources and the annual caps on resident fees will impact the debtor profiles for providers. Debtors are predicted to increase, and the gap between those who proactively manage their debtor profile and those who don’t will widen considerably. Read more...
Top Tips: Activity Driver Improvements
Identifying and measuring the activity drivers in your service is only part of the priority. Understanding how to manage these activities in order to improve returns is where true value is realised. Read more...
Top Tips: New Resident Information
Explaining the new payment methods, means testing and other changes to residents will come with its fair share of challenges as we all familiarise ourselves with the new frameworks. These top tips will provide you with a succinct and easy to implement starting point to ensure that the key documentation – the Residential Aged Care Service Agreements – are up to date. Read more...