Bridging the Gap in the Home Care Wage Increase and Strengthening your Financial Viability

The announcement of a 15% wage increase for aged care workers has not been entirely matched by an increase in home care package funding (which is 11.9%).   Further, consumer consent will be required for any increase in price, which itself is a predicament given inflation and its impact on the available funding to purchase goods and services.

The challenges these announcements bring can be overcome by making some imperative changes.  

The following steps will help you bridge this gap and strengthen your financial viability:

1.       Assess and quantify the price changes to be made:

• Reassess the costs of your services in light of the wage changes and general inflation impact.
• Ensure your financial team have strong KPI reporting and a robust financial governance framework and that you understand the cost changes that are coming 1st July. 
• Consider reviewing your procurement processes and costs to streamline how your goods and services are delivered to your consumers. 
• Assess market competitiveness of your goods and services and determine the recovery margin is in alignment with the business strategy. 
• Check that changes in pricing comply with guidelines and expectations. The key reference document is the Home Care Operations Manual for Providers. 

2.       Marketing and communication plan – discovery, review and implementation:

• Have a clear and well documented strategy is absolutely critical given the potential impact of the price changes. 
• Ensure consumers understand the basis for change and continue their journey with you as their preferred home care partner.  This is also a good opportunity to improve your value proposition to your current and potential consumers.   
• Implement an internal stakeholder communication and engagement plan, including staff training on the regulatory updates and changes to legislation. 

Please reach out to Payal Kapoor for financial strategy and planning and Claire Ward for marketing and communications planning.