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Public Sector in Aged Care: Ethos, Reality, and Market Trends

Explore the role of the public sector in aged care, navigating through market challenges, consumer trends, and reform readiness. Gain insights and strategies for successful change management in this evolving sector.

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Public Sector in Aged Care: Ethos, Reality, and Market Trends

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  1. Public Residential Care; Privatisation – Ethos & Reality LASA State Congress & Exhibition Trevor Carr Chief Executive Victorian Healthcare Association

  2. Ethos & Reality • Ethos – change to implement reforms from Living Longer Living Better • Reality – market withdrawal – metropolitan Melbourne

  3. Public Sector in Victoria • Public sector plays crucial role in regional and remote locations. Fills market gaps, ensures service availability and continuity • The largest provider in the State • Currently 6000 (12.5% of total) • 1060 of these metro • 4940 without metro beds = still over 10% of Victorian market

  4. Public Sector in the Market Environment • Philanthropy to competitive reality • Offering a great product that your community wants and needs • Adapting to trends • Positively market that product • Changing the dialogue to identifying our strengths • Whole of organisational approach • Focusing on consumer experience

  5.  Trends in the Aged Care Sector: • Increasing consumer expectations on quality, type and flexibility of care • Increasing consumer choice and control • The transition of the aged care sector to a competitive marketplace • Rising resident acuity and related increases in demand for high-level clinical care and shorter resident stays

  6. VHA PSRACS Readiness Project Summary • State Government funded project • Sector led • Purpose: to provide support in addressing the federal aged care reforms • Scope: all services providing PSRACs • Runs until end of 2014

  7. VHA PSRACS Readiness Project Outcomes • Development of a Financial Model and Supporting documentation • Operational Readiness Tool • Regional forums • Release of Targeted Information Products • Weekly Information Bulletins • Point of contact and enquiry for PSRACS

  8. Reform & Change Management - I A well-prepared aged care provider has: • An aged care vision, strategy and action plan • An engaged board, senior executives and staff team who understand the reforms and how they will affect their own roles within the organisation • An embedded and shared commitment to continuous improvement and best practice

  9. Reform & Change Management - II • Aworkforce and cultural change-management strategy, including training and other staff engagement activities • Adetailed consumer and community engagement strategy • A plan to successfully compete in a market-driven sector • Acomprehensive understanding of revenue and cost structures

  10. Reform & Change Management - III • An understanding of future infrastructure requirements in a changing sector environment • Up-to-date systems ready for the changes to service structure, provision and billing after 1 July 2014 • A culture of accountability and responsibility for quality and risk management between board, executive, staff and consumers.

  11. Policy issues • Unclear position re growth • Access to capital - barriers

  12. PSRACS Maximum accommodation prices: Metro * Prices not available for 6 Metropolitan PSRACS as at 24 May 2014

  13. PSRACS Maximum accommodation prices: Metro

  14. PSRACS Maximum accommodation prices: Rural

  15. The reforms are positive • These reforms are better for consumers • More choice, more control, more transparency, better access • If implemented effectively the reforms present an opportunity to the public sector • Setting a positive culture around the reforms and upcoming change is crucial

  16. Reality – the Melbourne market

  17. PSRACS profile – metro Melbourne

  18. PSRACS profile – metro Melbourne Issues: • Services for aged people with mental illness not well established in the non-government sector – (? ongoing support to new providers by government) • Location typology – freehold, crown land, colocation • Some facilities sub-scale (<30 beds) • Variable fabric condition • Transmission of business issues – public sector wages

  19. PSRACS profile – metro Melbourne Options: • Transfer as is • Transfer with development potential • Transfer with site master plan for redevelopment • Relocate off site (the majority of beds in scope)

  20. Invitation to register: The Opportunity The Department intends to select a prequalified panel of service providers that will have the opportunity to: ► Work in partnership with the Department to develop options for reallocation of places and investment in capital developments or redevelopments ► Gain critical mass in the future of aged care services provision ► Deliver complex residential aged care services across metropolitan Melbourne.

  21. Invitation to register: Objectives The objectives of the Department are to: ► Maintain the number of aged care places available to Victorians, and continue the high level of service quality ► Achieve a measured reallocation of public sector managed residential aged care places to non-government providers in the Melbourne metropolitan area ► Promote the provision of responsive and innovative delivery of aged care.

  22. Progress: • ITR closed in February • Due diligence of applicants underway • First round offers late 2014 (<500 beds and 3 land bank sites)

  23. Thank you

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