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11th September 2024
Navigating the Uncertain Future of Aged Care Reform
Governance
INFOCUS | Governance and Leadership in Aged Care
Relief from Change Fatigue or Prolonged Uncertainty?
The pressing question on everyone’s mind: Will the Albanese government’s promise to implement the New Aged Care Act by 2025 actually materialise? The conspicuous lack of recent developments hints at a growing likelihood of significant delays in rolling out this pivotal legislation. One major reason for this hesitation is the need for bipartisan support to enact the Aged Care Task Force’s recommendations, which include a co-contribution model for aged care funding. Although the opposition has shown broad support, no government would want to head into an election with the politically sensitive issue of increasing aged care fees at the forefront. This political hot potato, combined with unfortunate timing, has put the sector in a precarious position.
As the Albanese government considers delaying the New Aged Care Act, it brings up an important question: Will this delay offer much-needed relief from change fatigue, or will it worsen the existing challenges within the sector? For the past six years, the aged care sector has been navigating a turbulent landscape, marked by the Royal Commission into Aged Care Quality and Safety and the unprecedented challenges posed by the COVID-19 pandemic.
The Implications of Delay: Relief or More Challenges?
Recovery from Change Fatigue:
On the positive side, a delay could allow the sector to recover from change fatigue. Providers would have additional time to focus on critical technology and workforce planning strategies. They could also strengthen their ’employer of choice’ initiatives to ensure their workplaces are desirable, thereby investing in staff capabilities in preparation for the strengthened aged care standards. This ongoing break would enable organizations to stabilise their operations, integrating initiatives more effectively to become reform-ready.
Strategic Planning:
A slower pace of change can facilitate more thoughtful strategic planning. Organisations can develop long-term strategies that align with anticipated reforms, ensuring they are prepared when the new legislation eventually comes into effect. This period also offers an opportunity to explore innovative solutions and best practices from other sectors or countries, allowing time to pilot and refine these approaches before mandatory implementation.
The Drawbacks of Prolonged Uncertainty:
Financial Uncertainty:
On the downside, prolonged uncertainty leaves boards and executives grappling with ongoing financial instability. This situation creates continued angst among stakeholders who have been waiting for the promised reforms. The lack of clear direction makes long-term planning and investment decisions challenging, hindering the sector’s ability to innovate and improve.
Stakeholder Anxiety:
Older people, families, and staff may experience anxiety and frustration due to the lack of progress and clarity on the future direction of aged care. This prolonged uncertainty can erode confidence in the aged care system, making it difficult to maintain trust and demonstrate a commitment to high standards of care and accountability.
Risk of Complacency:
Delaying reforms may entrench existing practices and lead to complacency. Organisations might become resistant to future changes, making it harder to implement necessary reforms when they eventually occur. This could result in missed opportunities for immediate improvements in care quality and operational efficiency.
The Importance of Certainty:
Everyone agrees that having certainty allows for investment, whether in people or capital infrastructure. Both are essential for the long-term goal of developing a robust aged care system capable of growing under the increasing demand of an aging society. The only certainty in this scenario is that the market will continue to grow under the strain of demographic changes. Providers will likely see high occupancy rates in residential care and increased utilization of Home Care Packages (HCP). This situation does not bode well for consumers in the medium to long term, as choice will constrict and availability will decline.
The potential delay in enacting the New Aged Care Act by the Albanese government highlights the complex interplay between political considerations and sectoral needs. While a delay might offer temporary relief from change fatigue, it is not a cure-all. The aged care sector must balance the benefits of recovery time with the risks of prolonged uncertainty and complacency.
Industry leaders and boards should use this period strategically, focusing on employee well-being, incremental improvements, and long-term planning. By maintaining a proactive approach and leveraging this time for thoughtful preparation, the sector can emerge stronger and more resilient, ready to meet the challenges and opportunities of future reforms.
Ultimately, the goal remains to provide high-quality, compassionate care for Australia’s aging population. Whether through immediate action or careful preparation during a delay, the commitment to continuous improvement and excellence in care must remain unwavering. Preparedness and adaptability will be key to thriving in an ever-evolving aged care landscape, ensuring that the sector continues to meet the needs of its residents with dignity and excellence.
Lets watch this space and see what happens now the Olympics are over and our Minster returns to her regular duties.
About the Author
Cynthia Payne has more than 30 years of executive leadership experience and over 20 years as a Director in both NFP and FP boards. Cynthia founded Anchor Excellence in 2018 and in 6 short years has impacted over 45% of the Australian aged care market via its programs, solutions and education including the home for SAGE Executive Study Tours
Passionate about leaders, supporting and enabling them, as defined by consumers’ lived experience, Cynthia and the twenty-strong AE team together have a formidable level of expertise and commitment to the entire aged care ecosystem- residential, homecare, NDIS and retirement living.
Cynthia holds an MBA, Bachelor of Applied Science in Nursing, Cert IV qualified Yoga teacher (800HrRYT), Certified Practitioner of Balanced Scorecard, Certified Aged Care Board Advisory Chair and Certified Practitioner with Team Management Systems – TMP, Quotient and LLP.
She is a Member of AICD, a Fellow of the Governance Institute Australia and long-term member of the Australian College of Nursing and a Fellow of the Manager and Leaders Institute. She is current INED for listed entity Painchek (2022-Current), Board Advisor to Total Construction (2019- current), Director of Commonwealth Study Conferences (Australia) and (Association of Commonwealth Leadership Conferences), Director of the Mind Connections Foundation and past INED for the National Heart Foundation (2017-2021).
Cynthia also volunteers as an Independent Review Panel member for Business Excellence Australia.