Skip to main content

The Government’s Age Care plan is starting to take shape…

The Australian Government and Senior Australians

The Australian government wants to keep senior Australians in their homes for longer. At first glance, this policy direction seems set to impact Aged Care providers negatively. But what if this change in direction is a good thing? Ian Hamer explains

Continued government policy changes to keep senior Australians in their homes for longer allows Aged Care providers to leverage their property assets, staff and clinical capability to deliver high care Home Care Packages to the surrounding community. 

Before the current Royal Commission, The Tune Report (2017) was already recommending significant disruption to the aged care sector. 

What are the Recommended Aged Care Package Changes?

Some pertinent recommendations concerning home care packages were:

  1. Rebalancing home care with high care packages replacing low care packages 
  2. Introducing level 5 packages (equivalent to a high ACFI) to enable more clinical services and care to be delivered in the home 
  3. Vacant RAC places to be converted into temporary high care packages
  4. Basic daily and income-tested fees cannot be waived
  5. CHSP co-payments to be mandatory
  6. An increased focus on wellness and reablement 

Opportunities for Aged Care Providers Following the Royal Commission

The Royal Commission has continued the focus on keeping senior Australians in the home for longer. The opportunity is there for aged care providers to take. Traditional home care providers focus on domestic assistance and personal care services delivered by care workers. Most have little (if any) clinical capability. RAC providers conversely have the high clinical capability and can utilise this capability to focus on providing Level 3 – 5 packages. 

The opportunity for the aged care sector includes:

  1. Leveraging the clinical capability, balance sheet and EBITDA to support the development of high care in-home offering
  2. Low barriers to entry for RAC
  3. The utilisation of RAC staff in less busy times at the home
  4. High care packages providing a “feeder service” to a RAC bed
  5. Bricks and mortar in the community can accommodate onsite wellness and reablement services to both RAC and home care clients
  6. The RAC can serve as a touchpoint between client/family and provider to enable personalised, face-to-face contact 
  7. Mutually beneficial relationships can be formed with CHSP providers to feed the transfer process from low care to higher care

What are the benefits of Supporting Older Australians?

The benefits in supporting older Australians in the home, enhance their lived experience and their quality of care is both social and financial. Anchor Excellence can work with aged care providers to: 

  1. Develop a strategy (local, regional, national) to establish a home care service as an organic growth initiative
  2. Work with management to obtain board approval
  3. Structure a tailored operating model for each home/region by the board-approved strategy
  4. identify potential bolt-on acquisitions

Home care can make good margins and should generate EBITDA margins of 10-15%, while also providing a feeder service into the RAC home.  

We would be very happy to discuss the home care sector and your existing operations and strategy with you further.

Ian Hamer and Anchor Excellence

At Anchor Excellence, we work with leaders to enable them to implement excellent approaches to leadership, transformation and compliance. We are driven to enable aged care services (large and small) to transform via the lens of the lived experience of older Australians.

Ian is a highly experienced and commercially astute professional with substantial experience in the health care and property sectors – with a legal/finance and M&A background. Ian Hamer has been in Senior Executive roles for over ten years, possessing strong M&A, management, operational, clinical governance, strategic, business analysis, growth and business development skills.

He has a complete understanding of government-funded care delivery programs, through to clinical governance and efficient operational models. We’re delighted to have his expertise and skillset at Anchor Excellence.

Leave a Reply