LASA
AUTUMN EDITION
issue 1, 2015
A publication from
Leading Age Services Australia – Victoria
LASA Victoria
Seminar Series
pg 5
2015 Tri-State
highlights
pg 8
Training with
LASA Victoria
pg 10
issue 1, 2015
Proud LASA Victoria sponsors:
LASA VOICE AUTUMN EDITION
Proud LASA Victoria sponsors:
01
essage from the LASA
03:MVictoria
CEO
mproving the quality of
13:Ifood
in aged care: Are you
04:
05: Awards for Excellence 2015
05: LASA Victoria Seminar Series 2015
ictorian Aged Care Data
06:VSummary:
Approvals and
14:Well rounded dining
16:Consortia Business Model
for CDC :
17:Aa ccounting
practical approach
LASA National Update
Operational Places
ready for the Baby Boomers?
eware the hidden costs of
19: Bunchallenged
OHS notices
07:Marginalised Aged Person Committee
20: Community Care Taskforce
08:Tri-State 2015
Embrace technology for
21:
Training experiences with
tomorrow’s customers
10:
LASA Victoria
for Costs of
23: Accounting
Consumer Directed Care
12:
China-Australia Free Trade
Agreement opens new doors for
Victorian aged care providers
Contact:
p:03 9805 9400
f: 03 9805 9455
e:[email protected]
w: lasavictoria.asn.au
Disclaimer: LASA VOICE is produced by LASA VICTORIA for the information of its members. Contributions are welcomed from any organisation or individual, however the
Organisation, through its Editor, reserves the right to edit all submissions as it sees fit. Whilst the Editor endeavours to ensure that all information is correct, the Organisation
does not take responsibility for incorrect information. The views expressed in this magazine are the authors’ own and do not necessarily reflect those of the Organisation.
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Unit 33, 41– 49 Norcal Road
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T 03 9264 8700
F 03 9872 3709
E [email protected]
W www.aimsoftware.com.au
9/02/2015 10:45 am
MESSAGE FROM THE
LASA VICTORIA CEO
Trevor Carr
Media engagement
over the course of the
Tri-State Conference resulted
in the delivery of key messages
about the aged care industry,
in the public domain.
Welcome to the Autumn edition of the LASA VOICE magazine. We have had a very strong start to
2015 co-hosting a successful Tri-State Conference with our colleagues from New South Wales and
South Australia. We welcomed close to 500 delegates to the Albury Entertainment Centre who took
part in discussions around the emerging challenges our Members face every day in age services.
Tri-State offered a wonderful opportunity
for our industry to move away from their
demanding daily cycles and to network
and share insights with one another.
Over three days, the Conference
theme of Aged Care: Adapt Today.
Thrive Tomorrow. allowed delegates
to explore and discuss how our
industry has experienced, and is still
working through an extraordinary
period of change.
I am happy to inform Members we
received extensive cross media coverage
over the course of the Conference.
Interviews with radio, television and print
media outlets resulted in favourable
coverage of the conference and the
issues faced by our industry.
Media engagement over the course of
the Tri-State Conference resulted in
the delivery of key messages about the
aged care industry in the public domain.
The key messages included:
The Australian population aged
over 85 will increase by about
400 per cent over the next 35 years
Current care solutions to the rising
population will require 200 beds
to be built every week throughout
that period
An increase in the rising population
have resulted in funding and
policy responses to consider new
approaches to care
Social and fiscal decisions must
be made to ensure the needs of
individuals continue to be met
at the standard we enjoy in a
prosperous nation
The average resident has
much higher care needs when
accepting residential placement
than 20 years ago
Our older Australians are being
cared for longer in their own home
into their physiological ageing.
At LASA Victoria we aim to engage with
the media in a proactive way and advocate
key policy issues. I urge Members to work
within your communities and to take an
active role in engaging your local media
and making your concerns heard. We at
LASA Victoria are willing to support our
Members with these endeavours.
We hope you enjoy this edition of LASA
VOICE which includes further highlights of
the Tri-State Conference on pages 8-9 also
articles on the new Consumer Directed
Care (CDC) environment on pages 17
and 23, improving the quality of food on
pages 13 and 14 and much more.
LASA VOICE AUTUMN EDITION
A highlight was having the opportunity
profiling LASA, by participating in the
3AW radio talkback show ‘Talking
Health’ hosted by Dr Sally Cockburn.
This show was entirely devoted to
aged care, and I was on the panel with
LASA Victoria President Ingrid Williams,
and Board Directory Paul Ostrowski.
Other media highlights included interviews
for WIN News Albury, MyMP for the
‘My Melbourne’ program with Glenn
Ridge, a page 10 story in the Border
Mail, ABC Goulburn Murray and various
radio grabs across Australia that went
as far as Tennant Creek and one with
Melbourne’s GoldFM reached an audience
over 4 million.
issue 1, 2015
03
Patrick Reid, Chief Executive Officer
Leading Age Services Australia
LASA
NATIONAL
UPDATE
Government is a partner in industry efficiency – Department of Human Services need to show
good faith to providers affected by ongoing errors.
S
ince 1 August 2014, Home and
Residential aged care providers
have experienced frequent and
continuing errors with home
care payments, means and asset
assessments and subsequent payments
from Medicare. As a result providers have
been burdened with significant extra
cost and administrative liability, including
meeting normal business reporting, audit
requirements and deadlines.
Despite LASA’s ongoing advocacy with
the Department of Human Services (DHS)
(including DHS Secretary Kathryn Campbell
and Minister Senator Marise Payne) our
providers and older Australians in their care
continue to be significantly impacted by
payment and assessment errors.
Over 18 months since the initial
home care payment issue emerged
LASA Members still report:
Home care payments are still
managed manually
Providers may be approached
about under or overpayment of fees
A number of Income Test Fee
Subsidy reductions are being
incorrectly deducted from subsidies
Subsidies do not match income
test fee letters
Deductions are simply overstated
Clients who receive no subsidy still
receive letters apportioning a cost.
Naturally this is causing significant
confusion and concern for clients.
Entering aged care can be stressful due
to infirmity, sickness or loss. To add to
this stress are the financial implications
that need careful consideration.
04
LASA will seek a stipend from the
Commonwealth to affected providers
equivalent to their pro rata costs until
it is remedied.
Where payments are altered months after
entering care, a significant and unexpected
cost is not something families expect,
nor should they. Older Australians rely on
receiving accurate information and industry
depend on it for efficient operation.
Whilst government is quick to point the
finger at providers, in this instance they
must acknowledge systemic and sustained
failure like this is simply unacceptable.
The ongoing incompetence of government
falls squarely on a provider’s lap. The reality
is in order to rectify the error care providers
face the burden of calculating, billing
and then reviewing, re-billing for months
that have passed as Medicare reduce
payments – leaving care providers to chase
up the resident for the unpaid amount.
Care providers are also left to explain the
reasons to residents and their family.
Feedback from LASA
Members suggest that
Medicare errors is impacting
approximately 15 per cent
of aged care recipients.
We have examples of aged care providers
currently owed over $100k due to these
errors, single facilities owed $50k+ and
numbers of residents now owing thousands
of dollars, with no assistance from
Department of Social Services (DSS) or
DHS to recoup the out of pocket providers.
LASA’s advocacy to both errors
on means testing and home care
payment errors has been unrelenting,
incorporating representatives from all
states and monthly meetings with DHS.
LASA has provided DHS with specific
information and enabled providers
direct access to key personnel and yet
the situation remains unresolved.
I have made urgent meeting requests with
Minister for Social Services, Scott Morrison
and Minister for Human Services, Senator
Marise Payne along with Human Services
Secretary, Kathryn Campbell. LASA is
now canvassing the costs to providers in
remedying ongoing inaccurate information
and mistakes. LASA will seek a stipend
from the Commonwealth to affected
providers equivalent to their pro rata costs
until it is remedied. It is also essential that
affected residents receive personalised
communication from DHS accepting
responsibility for the errors. Both of these
measures would be acts of good faith
from the Commonwealth, something that
has been lacking thus far.
To our Members, still affected be assured
our advocacy has taken on a new
dimension and resolution of individual
cases and a guarantee of systemic
efficiency continues as a priority.
Principal Sponsor
Nominations close: Friday 29 May
We encourage all LASA Victoria Members and Corporate Partners
to be involved in the 2015 LASA Victoria Awards for Excellence
and to nominate deserving recipients.
Award categories:
Employee
Large Provider
Small Provider
Volunteer
i
NEW
NEW
Emerging Leader
Corporate Partner.
LASA Victoria Awards for
Excellence Cocktail Function:
Date: Thursday 30 July
Venue: Leonda by the Yarra
Time: 5.00pm – 7.00pm
For more information about the Nominations and Awards for Excellence
Cocktail Function email [email protected]
LASA VICTORIA
SEMINAR SERIES 2015
Our seminar series are specialised professional development events bringing
together niche markets to hear from industry experts; providing an excellent
networking opportunity for participants to connect and share lessons learnt.
We are hosting the following seminars in 2015:
Aged care catering &
hospitality seminar
Come dine with me
Residential care seminar
Date: Thursday 14 May
Venue: Leonda by the Yarra
Consumer directed
care seminar
Date: Monday 1 June
Venue: Leonda by the Yarra
Governance
seminar and Awards
for Excellence
cocktail function
Date: Thursday 30 July
Venue: Leonda by the Yarra
Date: Thursday 13 August
Venue: Leonda by the Yarra
Finance seminar
Date:
Thursday 17 September
Venue: Leonda by the Yarra
Community & home
care seminar
Date: Monday 16 November
Venue: Leonda by the Yarra
For further details about our Seminar Series contact the LASA Victoria Events Team on
03 9805 9400 or [email protected]
issue 1, 2015
i
Wednesday 24 June
Venue: Leonda by the Yarra
Workforce, health &
safety seminar
LASA VOICE AUTUMN EDITION
Date: Wednesday 29 April
Venue: Leonda by the Yarra
Property seminar
Date:
05
David Wright-Howie, Policy & Research Coordinator
Leading Age Services Australia – Victoria
VICTORIAN AGED CARE
DATA SUMMARY:
APPROVALS AND
OPERATIONAL PLACES
New aged care data is now available with the announcement of the Aged Care Approvals Round
2013-14 and the release of the 2013-14 Report on the Operation of the Aged Care Act.
2014 ACAR Results
A total of 4,881 new aged care places (3,113 residential aged care
places and 1,768 home care places) were allocated to Victorian
providers in the 2014 Aged Care Approvals Round (ACAR).
Aged Care
Planning Region
Residential
Places
Home care
places
Total
places
Southern Metropolitan
704
403
1,107
Eastern Metropolitan
486
405
891
Northern Metropolitan
541
337
878
Western Metropolitan
430
208
638
Barwon South Western
337
94
431
Loddon-Mallee
183
93
276
Grampians
176
51
227
Hume
136
87
223
Gippsland
120
90
210
3,113
1,768
4,881
TOTAL
Residential aged care places summary
The Australian Government Department of Social Services
states that competition for new residential aged care places
was much stronger in the 2014 ACAR than in previous rounds.
The Department received applications for 6,295 new residential
aged care places in Victoria, this means that approximately two
new places were sought for every place available.
60.6 per cent of residential aged care places in Victoria were
allocated to new residential aged care facilities
30 per cent of residential aged care places allocated to new
residential aged care facilities in Australia were in Victoria
80 per cent of residential aged care places in Victoria were
allocated to private providers. (This compares to 68 per cent
nationwide)
69 per cent of residential aged care places in Victoria were
allocated to residential aged care facilities in metropolitan
Melbourne.
Home care places summary
The Department received applications for 27,409 new home
care places in Victoria for the 1,768 places available. This means
that 15.5 places were sought for every place available.
06
60.1 per cent of home care places in Victoria were allocated to
new home care services
35.7 per cent of home care places allocated to new home care
services in Australia were in Victoria
74.2 per cent of home care places in Victoria were allocated
to not-for-profit, non-government providers. (This compares to
79.1 per cent nationwide)
76.5 per cent of home care places in Victoria were allocated to
services in metropolitan Melbourne
40.1 per cent of home care places in Victoria were for Level 3
home care packages. (This is consistent with the nationwide
figure of 42.9 per cent).
Proportion of 2014 ACAR Home Care Places
Allocation by Package Level
Level 1
Metropolitan
Level 2
Level 3
Level 4
Total
8.2
30.7
41.3
19.8
100%
Regional/Rural
27.2
20.7
36.4
15.7
100%
TOTAL
12.7
28.3
40.1
18.9
100%
2013-2014 Report on the Operation
of the Aged Care Act
RESIDENTIAL CARE
Occupancy rates in residential care places,
Australia, 2011-12 to 2013-14, by state and territory
State/Territory
2011-12
2012-13
2013-14
New South Wales
92.6
92.6
93.1
Victoria
92.4
92.1
92.5
Queensland
92.1
92.6
92.8
Western Australia
93.7
93.6
94.6
South Australia
95.2
94.7
93.9
Tasmania
92.6
92.4
92.1
Australian Capital Territory
93.7
93.5
95.5
Northern Territory
91.6
91.1
86
TOTAL
92.8
92.7
93
Number of Victorian Operational Residential
Care Places, Other Than Flexible Care Places,
by Provider Type, 2008-09 to 2013-14
Operational
Places
20082009
20092010
20102011
20112012
20122013
2013- 5 year 5 year
2014 change change
No.
%
Religious
7,285 7,091 7,016 7,193 7,569 7,465
Charitable
3,339 3,496 3,410 3,410 3,449 3,785
Community 6,434 6,581 6,551 6,706 6,847 6,959
Based
Private
22,120 23,090 23,611 24,127 24,464 25,501
State
Government 5,917 5,939 5,923 5,847 5,534 5,480
Local
777
732
732
480
480
315
Government
TOTAL
45,872 46,929 47,243 47,763 48,343 49,505
180
446
525
2.5%
13.4%
8.2%
3,381
15.3%
-437
-7.4%
-462 -59.5%
3,633
7.9%
Proportion of Victorian Operational Residential
Care Places by Provider Type, 2008-09 to 2013-14
Operational
Places
20082009
20092010
20102011
20112012
20122013
2013- 5 year
2014 change
Religious
15.9% 15.1% 14.9% 15.1% 15.7% 15.1%
Charitable
7.3%
7.4%
7.2%
7.1%
7.1%
7.6%
14.0% 14.0% 13.9% 14.0% 14.2% 14.1%
Community
Based
Private
48.2% 49.2% 50.0% 50.5% 50.6% 51.5%
State
Government 12.9% 12.7% 12.5% 12.2% 11.4% 11.1%
Local
1.7%
1.6%
1.5%
1.0%
1.0%
0.6%
Government
TOTAL
100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
-0.8%
0.4%
0.0%
3.3%
-1.8%
-1.1%
HOME CARE
Level 1
Level 2
Level 3
Level 4
TOTAL
Operational
Places
20082009
20092010
20102011
20112012
20122013
2013- 5 year 5 year
2014 change change
No.
%
Religious
4,738 4,984 5,210 5,378 5,473 5,972
Charitable
2,654 2,749 3,168 3,391 3,451 3,511
Community 1,524 1,701 1,807 1,840 1,952 2,357
Based
Private
260
382
466
591
591
919
State
Government 1,455 1,552 1,632 1,729 1,703 1,949
Local
Government 1,121 1,149 1,185 1,210 1,155 1,243
TOTAL
11,752 12,517 13,468 14,139 14,325 15,951
1,234
857
833
26.0%
32.3%
54.7%
659 253.5%
494
34.0%
122
10.9%
4,199 35.7%
Proportion of Victorian Operational Home Care
Packages by Provider Type, 2008-09 to 2013-14
Operational
Places
20082009
20092010
20102011
20112012
20122013
2013- 5 year
2014 change
Religious
40.3% 39.8% 38.7% 38.0% 38.2% 37.4%
Charitable
22.6% 22.0% 23.5% 24.0% 24.1% 22.0%
13.0% 13.6% 13.4% 13.0% 13.6% 14.8%
Community
Based
Private
2.2%
3.1%
3.5%
4.2%
4.1%
5.8%
State
Government 12.4% 12.4% 12.1% 12.2% 11.9% 12.2%
Local
9.5%
9.2%
8.8%
8.6%
8.1%
7.8%
Government
TOTAL
100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
-2.9%
-0.6%
1.8%
3.5%
-0.2%
-1.7%
For further information contact:
Occupancy Rates in home care packages by level,
Australia, 2013-14
Care Level
Number of Victorian Operational Home
Care Packages, Other Than Flexible Places,
By Provider Type, 2008-09 to 2013-14
Occupancy
48.7
88.8
59.9
90.1
88.4
David Wright-Howie
Policy & Research Coordinator
Leading Age Services Australia – Victoria
03 9805 9400
MARGINALISED AGED
PERSON COMMITTEE
T
he challenges these providers face are often compounded
by clients who have complex needs which includes but
are not limited: to financial, social and mental health issues.
So far the MAPC have had three meetings with Members raising
issues they face regarding the new reforms and these issues have
The Commonwealth government representatives have made
themselves available to Members for discussion and clarification.
For more information please contact:
Denise Mitchell, Manager Residential Care Services
03 9805 9400
[email protected]
issue 1, 2015
One of the objectives of the Aged Care Act 1997 was to
facilitate equal access to both residential and home-based aged
care for those who are financially or socially vulnerable. The reforms
as part of the Governments ten year plan for the aged care sector
was to continue this assistance. Some features of the changes
to the aged care system have the potential to either support or
counteract the provision of access for the disadvantaged.
been referred to the Department of Social Services through
LASA Victoria. Recent concerns have been raised relating to the
financial hardship supplement which these providers have reported
is difficult to secure due to the limitations of the application form.
LASA VOICE AUTUMN EDITION
The Marginalised Aged Person Committee (MAPC) has representatives from
providers who service residential and the community care sector.
07
DAY 1 HIGHLIGHTS
TRI-STATE
2015
The Conference opened with an invigorating panel
discussions facilitated by Cam Ansell from Ansell
Strategic with panellists: Paul Ostrowski (CEO,
Care Connect and LASA Victoria Board Member),
Derek McMillian (CEO, Retirement Living, Australian
Unity and LASA Victoria Board Member) and Grant
Corderoy (Senior Partner, StewartBrown). The panel
discussed reform progress and how the industry is
adapting to its impact, future sustainability and the
new consumer directed environment the sector is
moving towards.
Day one concluded with a Welcome Reception
Cocktail where delegates networked at a Function
hosted by RSM Bird Cameron. Bill Tilly MP, Member
for Benambra was invited to enjoy the evening
with delegates, 48 exhibitors and LASA Victoria
Board Members.
THE 24TH ANNUAL
TRI-STATE CONFERENCE
AND EXHIBITION,
HELD AT THE ALBURY
ENTERTAINMENT
CENTRE, ATTRACTED
CLOSE TO 500 AGED
CARE PROFESSIONALS
FROM 22 - 24 FEBRUARY.
1
2
The Conference theme of: Aged Care: Adapt Today.
Thrive Tomorrow. explored how the industry
has experienced, and is still working through, an
extraordinary period of change.
Delegates had the opportunity to hear from
professionals from across the aged care industry
and others that stimulated debates, and no doubt
challenged their way of thinking throughout the
course of the Conference.
3
Eminent industry experts provided
insights on topics including:
4
• Advanced care planning
• Leadership
• Crisis Management
• Consumer Directed Care
• Industry sustainability
• Electronic Health Record
• Telehealth
• Technology solutions
• Workforce and skills issues.
08
1: Registrations open for 2015
2: Dr Sally Cockburn officially opens Conference
3: Panel Discussion
4: Bill Tilly MP networking at the Welcome Reception.
DAY 3 HIGHLIGHTS
1
The morning of the final day began with a
presentation from First State Super’s Richard
Brandweiner, CFA on universal ownership and
responsible investing, followed by Louise Forester
who spoke about the importance of attracting
young people to the aged care industry.
Delegates also had the opportunity to hear from
Karen and Cheryl Wilson who presented on
culturally appropriate quality care in rural and
regional areas of New South Wales.
2
3
The last Plenary session of the Conference was
presented by Professor William Silvester, Director,
Respecting Patient Choices Program, Austin
Hospital. Professor Silvester spoke about how
advanced care planning and end-of-life care are
crucial to delivering quality aged care.
Keynote speaker Tom O’Toole, one of the highest
earning single bakery retailers, closed the
Conference with a bang. Through his inspirational
presentation he dared delegates to lead and make
the customer the centre of their business.
4
1: Stump the Strategist
2: Alan Briggs, Briggs Communications
3 & 4: Tri-State Conference Dinner.
DAY 2 HIGHLIGHTS
1
The second day of the Conference started strong
where Adam Long, Jeff Cooper and David Siegel
from Step Change Marketing were challenged by
the audience to come up with marketing solutions
for advanced care planning, recruiting younger
people to work in aged care and starting up a new
in-home business.
Delegates heard from industry experts about
pressing issues such as leadership, crisis
management and attended concurrent sessions
on residential and community care as well as
management.
1: Richard Brandweiner CFA, First State Super
2: Professor William Silvester
3: Keynote speke Tom O’Toole.
3
issue 1, 2015
Co-hosted by:
2
LASA VOICE AUTUMN EDITION
In the afternoon, LASA Victoria announced the
development of our OH&S Committee of the
Aged Care Health & Safety Manual. More
information about this new initiative will be
available in the coming weeks, prior to the
official launch mid this year.
09
TRAINING
EXPERIENCES
WITH LASA VICTORIA
We are the largest training provider specialising exclusively in aged
and community care as well as the contracted Registered Training
Organisation (RTO).
Our focus is on increasing the capacity and capabilities of Victoria’s
workforce now and in the future through our training service which
includes Accredited Qualifications, Short Courses and a range of Workshops.
We spoke to some of our participants and training managers about their experiences with us:
ACCREDITED QUALIFICATIONS
Jo Lister
Betty Brodie
Diploma of Community Services Coordination
BlueCross
Dual Certificate IV in Aged care & Frontline
Management
The content of the course was 100 per cent relevant and every
topic we covered was related to my role and workplace.
After each unit I was able to apply my learning at work
immediately, which was really motivating. I can look beyond
the day to day details of my job and understand the bigger
picture. I can access workplace situations and explain things
in a more sophisicated language. Our trainer was engaging,
entertaining and committed to her students. Her industry
knowledge was comprehensive and current.
Jeffrey Booth
Our trainers were fantastic with helping us understand and
complete all set units. They both gave great insight into their
professions and lots of useful information. Both trainers make
class time interesting and fun. The training provided me with
knowledge, skills and understanding of a coordinator’s job
role and helped give me a better understanding of this role and
its responsibilities.
Lynda Burns
Certificate IV Leisure and Health
Certificate III in Aged Care
Nazareth House
Nextt Health
As I have recently begun working in Leisure and Health in
the aged care industry, I felt all the units and information
were relevant and very useful throughout the course.
The case studies were particularly helpful as they brought
a humanitarian focus to the work. Throughout the course
I was able to gain the skills and knowledge that I needed
in order to gain employment and work independently as a
Leisure and Health Assistant.
All units were relevant to my work and the content and
practice can be directly applied in the performance of my
duties as an aged care worker. I used a hoist for the first time
in LASA Victoria’s state-of-the-art training facility and felt
totally competent in using a similar hoist to lift an aged
disabled resident out of bed. Our trainer achieved what
I regard as perfect balance between practical classroom
activity, audio visual presentation and class discussion.
Sue Philpott
Kate Tonge
Training and Development Manager
Education Manager
Sapphire Care
ACSAG
The feedback from the students in the Certificate III in Aged
Care and Dual Certificates IV in Aged Care and Frontline
Management or Leisure and Health is phenomenal.
LASA Victoria has a willingness to adapt to different
delivery modes, flexibility to change on the run if required
and a ‘can do’ approach to training. LASA Victoria always
looks at how to adapt.
10
Sapphire Care
The Sapphire Care training department has built a great
relationship with LASA Victoria.
AGED CARE GRADUATE NURSE
PROGRAM 2014
Some of the students from the Aged Care Graduate Nurse Program
at the 2014 Graduation Ceremony
Ella Turner
Jewish Care
It was always daunting telling people I was an ‘Aged Care Nurse’
at the start of the year, many people didn’t understand why a
23 year old would want to work in an aged care facility. I can
honestly say that I would not change one decision I have made.
I got accepted into the graduate position with Jewish Care
Victoria through LASA Victoria and since February 2014 I have
not looked back. I have stepped up and taken on many roles that
most graduates would not, and have felt my passion for aged care
nursing grow. With my lecturer’s encouragement and support
I am now looking into furthering my knowledge and practice in
Palliative Care and becoming a Palliative Care Specialist Nurse.
Paul Gardner
Stawell Regional Health
There is a rapid leadership role of Registered Nurses (RN) in aged
care and an RN in charge would not cope without this program.
You need to ‘grow up’ quickly in aged care in terms of leadership if
you want to be an RN in charge. You need that support of further
education, the advanced higher thinking that the LASA Victoria
program offers. It ‘kick starts’ you while learning the mechanics.
The education we received resulted in me being able to make more
insightful and intelligent decisions when it was time to be in charge
of the shift, and having the confidence to make those decisions.
My skill and knowledge base have grown but so has my critical
thinking ability.
AGED CARE
TRAIN WITH
LASA VICTORIA
TODAY!
Visit our website to find out more about our training:
lasavictoria.asn.au/education-training/
or contact us to discuss tailored opportunities:
RTO enquiries: [email protected]
Workshops enquiries: [email protected]
Events
Gerontic
Trauma Nursing
Conference
Melbourne
30 April - 1 May 2015
Philosopher
1863AA
Ausmed
Online
Ausmed
Conferences
Ausmed
Publications
Adelaide
30 April - 1 May 2015
This rare conference
looks at a range of highly
relevant topics that
are converging on the
provision of aged care now
and in the future. It will be
relevant to all those who
work with older people.
Register online at www.ausmed.com.au/course
or call (03) 9326 8101
issue 1, 2015
Ausmed
Education
Conference
LASA VOICE AUTUMN EDITION
Ausmed
Education
Logo
Design #3
This important conference
brings together experts
in geriatrics, trauma/
critical care, biology and
bioethics to discuss
the pathophysiology,
treatment and end-of-life
issues associated with
gerontic trauma.
Positive Ageing in
the Community
11
Paul Walsh, Relationship Director – Health
Bank of Melbourne
CHINA-AUSTRALIA
FREE TRADE AGREEMENT
OPENS NEW DOORS FOR
VICTORIAN AGED CARE PROVIDERS
The China-Australia Free Trade Agreement (ChAFTA) negotiations present exciting new
opportunities for Australian aged care providers looking to expand into a burgeoning and
dynamic overseas market, while establishing a more favourable investment environment
for Chinese investors into Australia.
T
he ChAFTA will come into
effect in 2015, permitting
wholly Australian-owned
hospitals and aged care
institutions to be established in China.
The potential benefits for aged care
providers are extensive.
China is the world’s largest economy,
and is set to become the world’s oldest
population as a result of increased
life expectancies and the country’s
one-child policy.
Its aged population will increase to 400
million by 2050, when one third of the
population will be over 60 years old1.
Only 1.5 per cent of these people are
currently accessing the country’s aged
care services, delivered through 47,000
aged care service providers hosting
5.09 million aged care beds2.
China’s aged care facilities are often
characterised by overcrowding, poor
amenities and inadequately trained
workers. Common cultural practice sees
children caring for their elderly parents,
and accepting support from outside the
family unit results in a ‘loss of face’.
However, this social trend is changing.
Large numbers of young people are
moving to major urban centres, leaving
behind elderly relatives who need support
as they age.
12
As a result, paying for aged care is being
increasingly seen as a viable alternative and
the growing middle class is demanding
better care.
The Chinese government has
acknowledged the growing demand for
aged care, announcing funding and policy
directions to speed up development in
the sector, particularly in infrastructure.
The government has a target of 35 to
40 aged care beds per thousand elderly
by 2020: that’s seven to eight million beds,
supported by a workforce of 10 million
(currently about one million). Applying
preferential policies to domestic and foreign
investors, including tax incentives, is also
encouraging private investment in the sector.
Austrade has outlined a number of major
export opportunities of which Victorian
businesses can capitalise on in the
Chinese aged care market, including
workforce development, home care
services, infrastructure design, and
development and health care products.
The Chinese market already hosts players
from Japan, the USA and France, with
many planning to design and build large
numbers of aged care facilities. Australian
entities already operating in China are set
to capitalise on the unique opportunities
presented by a combination of demographic
shifts and cultural change.
According to Austrade, direct investment
from Asian countries into Australia has
also been expanding rapidly over recent
years. China is the standout investor,
growing 29 per cent over 2012-13,
ranking it sixth among other foreign
investors into Australia’s economy.
The ChAFTA has raised the screening
threshold for non-sensitive sectors by the
Foreign Investment Review Board from
$248 million to $1,078 million.
In light of this, China is likely to increase its
standing as a foreign investor, presenting
further opportunities for Victorian
businesses seeking investment partners
for major projects in the aged care sector,
particularly in commercial real estate and
business services.
To find out how Bank of Melbourne
can help your business take advantage
of the growth in the health care
industry, contact:
Paul Walsh
Relationship Director – Health
9296 4254 or 0402 126 207
[email protected]
Chinese Academy of Social Sciences, ‘Social Blue paper:
Analysis and Prediction of Chinese Social Situation’, 2014
1
National Bureau of Statistics of China, ‘National Economic
and Social Development Statistics Bulletin’, 2013
2
IMPROVING THE QUALITY
OF FOOD IN AGED CARE:
ARE YOU READY FOR THE
BABY BOOMERS?
DID YOU KNOW THE BABY BOOMER GENERATION EAT OUT
ON AVERAGE 2.5 TIMES A WEEK?
Food quality and
customer satisfaction
Food quality and
improved nutrition
Training areas undertaken include units
covering food safety supervision, auditing,
aged care dietary and cultural needs.
Understanding residents’ food preferences is
essential to the overall customer satisfaction
within health care environments.
Malnourishment of residents is of prime
concern to providers in this sector. A report
by the Australian Government Department
of Health has highlighted how improving
food quality and presentation can improve
food intake in aged care residents. Improving
quality and presentation helps to address
poor nutrition, reduces associated health
risks and reduces waste, ultimately saving
time and money.
2 New Skills and Ideas
The baby boomer generation, more than any
previous generation, has been exposed to
a multitude of food and dining experiences.
They have a greater knowledge of food
and place high-value on dining experiences.
As this generation ages and becomes a
greater proportion of residents in aged care,
greater expectations will be placed on the
dining experience.
Aged care providers that have a clear focus
on quality food and are able to provide
nutritious, tasty and well-presented meals
that meet resident expectations have a
clear edge over other providers.
AVTES top tips for improving your
clients dining experience:
Focus on the nutritional value of the
food served
When presenting food ensure it
has the appropriate colour, texture
and height
United Hospitality Catering has been
working with AVTES to maintain and
increase training of their catering staff.
They see their business success resting on
the expertise of their staff and believe training
is the best way to ensure they have skilled,
knowledgeable and satisfied staff. They have
seen a range of benefits and outcomes from
the implementation of training including:
1 Tailored Training
United is able to choose elective topics
that are more relevant to aged care
catering, ensuring training is both
industry aligned and workplace relevant.
3 Improved Staffing
Through investing in their people United
has built employee satisfaction as well
as strong skills, company loyalty and
well-functioning teams. Increased
longevity of staff and sturdy succession
plans are also benefits they believe
arise from developing a strong training
culture within their organisation.
For further information on equipping
your business to better service your
current and future clients food and
dining expectations, contact:
Kirk Spinks
Client Services Manager at AVTES
03 9416 3 151
or alternatively come and see
the AVTES team at the upcoming
LASA Victoria Aged Care Catering
& Hospitality Seminar in April.
See page 5 for more details.
Use flavours, textures and aroma to
stimulate the senses
And remember great food is safe food.
issue 1, 2015
Having satisfied diners contributes towards
a more pleasant environment for residents
and staff, and ultimately a more successful
business.
AVTES’s Executive Officer
Patrick and
XxxCulinary Training
Expert Clinton,
xxx awarding the
United Hospitality Leadership
Team the Employer of the Year
Award as Part of the AVTES
2014 Training Awards.
LASA VOICE AUTUMN EDITION
Consider special dining occasions
such as; formal dining, high-teas,
themed cuisine meals and barbeques.
Doing something a little different gives
an opportunity to serve a variety of
foods in varied presentations
AVTES, training provider
assisting United Hospitality
drives industry change
United has experienced immediate
benefits from monthly training sessions
with AVTES. United staff have been
able to transfer the learnings from their
monthly AVTES training sessions directly
into their on-the-job roles in the kitchen.
13
Karen Abbey
Foodservice Aged Care Dietitian
WELL ROUNDED DINING
The dining room is one of the most important social places within residential aged care and
retirement living. It is a very complex environment, one which provides a place for residents to
receive nourishment, but also a place to gather and be social with a range of staff, families and
other residents. Residents can connect with the comfort and joy of food, reminisce about
familiar tastes and smells and enjoy another space within the facility.
Key considerations in dining room
design and set-up
Design:
Having adequate space for wheelie walkers, gel chairs
and even beds so that residents can come out of their
rooms and into the dining room for social interaction is
very important
Food Services Culture
Dining rooms come in all shapes and designs. The catering models
attached to these areas vary from bulk to tray services.
Setting the dining room space up and personalising to each
resident is very important.
The dining room and food service interface should be
carefully considered to ensure that systems complement
each other
This can be undertaken by allowing residents to choose where
they would like to eat and helping them to integrate into the
dining room space. Some allow residents to choose their own
place settings. It is often the little personal touches which can
make a difference to how a resident relates to the dining room
space and the dining experience overall.
The process of delivering meals to residents is seamless
and food is delivered at the correct temperature for both
hot and cold foods.
Dining rooms should be a place in which the residents like to go
to have their meals. All staff should be striving to make the meal
service a highlight of the day.
Compatibility:
Match residents so that they are compatible socially and
have some common interest with other residents sitting at
the same table.
Service and Support:
Rotate the serving of meals so that different tables are
served first in the meal service
Make sure residents are set-up correctly to eat and are
able to reach their meal
In other words, dining room services should not be
considered to be ‘another task’ by staff, rather an important
part of the day which presents an opportunity to provide a
high quality experience for residents. An experience that
allows them to maintain their quality of life in a friendly and
welcoming environment, as well as obtaining optimal nutrition
and hydration.
Employing the optimal experience approach as the basis of dining
room culture will guide organisations towards better resident
outcomes.
Ensure there is adequate light and a comfortable
temperature
Ensure each resident has the necessary eating
utensils and support needed to enjoy the meal time as
independently as possible.
The LASA Victoria Aged
Care Catering & Hospitality
Seminar will provide a valuable
day of learning and insight into
how others are meeting the
opportunities and the challenges
of dining in a consumer
directed environment.
See page 5 for more details.
Set dining table in residential
aged care facility.
14
LASA VOICE AUTUMN EDITION
issue 1, 2015
15
CONSORTIA
BUSINESS MODEL
A Consortia Business Model (CBM) refers to a form of collaborative working arrangement between
two or more organisations. Models can vary in composition depending upon their objectives, ranging
from informal networks, joint project delivery, and structured mergers.
A
CBM is aimed at
accumulating the resources
of two or more organisations,
whilst the entities remain
separate. Advantages include sharing
costs through synergies, delivering
improved and integrated services,
and sharing knowledge.
CBMs are developed to penetrate
new markets, mitigate risks and
enable access to new technologies.
They also avoid the pitfalls associated
with partnership arrangements.
While the term ‘partnership’ is used
to describe joint working, it has a
specific legal meaning. As a partnership
is created in order to derive a profit,
partners are responsible for the debts
and liabilities. Thus, the more affluent
partner can face greater risks. This can
be contrasted to a CBM arrangement.
In a CBM, two or more organisations
work collaboratively. A written
membership agreement does not
exist, nor is there a separate legal
status. This is beneficial as it can be
set up with minimal financial costs.
However, it does not necessarily
offer joint bargaining power.
Given the scale
of models in
operation, there
is a wide range
of cases to draw
information
from.
16
Consortia have been established with a defined structure and
governance arrangement which fall into three main formats:
1.
2.
3.
A ‘lead partner’ consortium
occurs when a leader is
nominated through whom
the other members agree
to work. Although the
consortium has no legal
status, an agreement
between its members sets
out their legal rights and
obligations. Members are
allocated an area of work
based on their expertise,
and the lead organisation
applies for contract
funding on behalf of its
members. Funding is
allocated with assistance
of sub-contracting
arrangements for particular
services or output.
This consortium makes
use of existing contract
management and
accountable body systems.
A ‘supply chain’
consortium can be
created whereby the
lead organisation
manages the supply
chain. The lead
organisation establishes
links with relevant
delivery bodies. Benefits
include a reduction in
the requirements for
tendering, monitoring and
reporting for lower-level
organisations. Likewise,
the lead organisation is
able to focus on quality
of output. However, it can
be difficult to establish a
clear identity as the model
becomes increasingly
integrated.
The ‘legal model’ is
the most structured
consortium.
An independent legal
entity is formed to
achieve its operating
purpose, such as a
social enterprise, a
company limited by
guarantee or a charitable
focus. This allows for full
ownership and control,
enabling the organisation
to clearly separate its
workings from the rest
of its activities. However,
members must consider
the costs of setting up a
new organisation and the
associated risks involved.
LEAD PARTNER
MODEL
SUPPLY CHAIN
MODEL
LEGAL
MODEL
With the increase in popularity of consortiums, the models have maintained a successful
existence over the last two decades. Given the scale of models in operation, there is a wide
range of cases to draw information from. Therefore, the success or failure of these models can
provide structural guidance to parties interested in jointly pursuing a project as a consortium.
Contact:
James Dickson, Manager - Audit and Assurance
03 9679 2303 or
[email protected]
Debra Ward, Principal,
Wardcon Solutions
ACCOUNTING FOR CDC:
A PRACTICAL APPROACH
Welcoming Debra Ward who has joined the LASA Victoria consultancy service team and has
specialised knowledge and skills in finance apects of CDC.
As you know, all Home Care Packages have to be transitioned to Consumer Directed Care (CDC)
by 1 July 2015. What does that mean for you as a provider of Home Care Packages?
step 1:
step 3:
One of the first jobs you will have to
undertake when transitioning to CDC
is to establish your cost base for:
The next major job you need to undertake is to work out:
Establish your cost base
Data collection and recording
What data you need to collect
Administration
How you will collect the data
Case Management/Care Advisory.
What systems you have versus what systems you need to comply with the
requirements of CDC
These are two of the major expense
categories that you will charge your
consumers so it is crucial that you
understand the cost base. You need
to include all costs associated with
these expense categories, for example,
your Administration charge will include
organisational overheads, insurance and
government reporting costs. Your Case
Management/Care Advisory charge needs
to not only include the salary cost but also
on-costs and associated IT equipment
and transport costs in your charge to
the consumer. If you fail to charge this
out appropriately, you could leave your
organisation with a shortfall that you cannot
on-charge to anyone else.
step 2:
Once you have established your cost base
for Administration and Case Management/
Care Advisory, you can set your pricing. You
will also need to determine if you are going
to charge a Basic daily care fee (maximum
of 17.5 per cent of the basic single pension)
and if you are going to allocate an amount
for contingency (max up to 10 per cent).
Accounting for CDC in your Finance System
My recommendation for the accounting set-up in your Finance System:
Use one cost centre for CDC
Establish sub accounts to break down into regions
Allocate individual identification numbers for each consumer for billing purposes
Remember that the Client Management System (CMS) is your sub ledger and will
track individual consumer income and expenditure so there is no need to replicate
this information in your Finance System.
CMS will generate a data port which will include:
Individual consumer billing details including daily care fees, income tested fees and
any additional contributions
Consolidated Government funding, Administration charge and Case Management/
Care Advisory charge
Supplier invoice details based on invoices received and actualised in the Client
Management System.
A reconciliation between the Finance System and Client Management System
(sub ledger) will need to be undertaken on a monthly basis.
All income should be initially allocated to the Balance Sheet with a portion transferred to
the Profit and Loss based on the total expenditure including the administration charge,
case management/care advisory charges and services and supplies (based on suppliers’
invoices). The unspent income portion will remain in the Balance Sheet until it is spent
by the consumer or the consumer leaves the program.
issue 1, 2015
With your pricing set, you then need to
educate your CDC staff on the pricing model
as they are the ones who have to explain
these costs to the consumer in order to
finalise the Home Care Agreement including
the Care Plan and the Individualised Budget.
step 4:
LASA VOICE AUTUMN EDITION
Set your pricing policy
What data you need to integrate between systems to make the process more efficient.
17
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Join the super fund that puts members first.
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18
LSA_LookAfterOthers_A4_1113
While you look after others,
we’ll look after you
Barry Sherriff, Partner and Luisa Gonzaga, Senior Associate
OHS practice of Norton Rose Fulbright Australia and
members of the LASA Victoria OHS Committee
BEWARE THE
HIDDEN COSTS
OF UNCHALLENGED
OHS NOTICES
A business issued with an OHS notice should carefully consider
seeking it be reviewed and understand the implications of not doing so.
Avoiding inspector action, business disruption and penalties of up to
$500,000 provide big incentives to treat notices very seriously.
A notice of an inspector
or Health & Safety
Representative (HSR can tell
you what to do or not to do
An improvement notice may be issued
where an inspector or health and safety
representative (HSR) reasonably believes
the laws are being breached or have
been breached and will continue.
The notice may direct you to do things
within a specified period.
A review is undertaken by an internal review
unit (IRU) within the regulator, who will
obtain and consider relevant information
and set aside the decision (notice) or
affirm or vary it. If you are not satisfied with
the IRU decision (to affirm the notice or
conditions the IRU applies) you may seek a
further review by the Tribunal which may set
aside, affirm or vary the decision (notice):
Why you may want to
seek a review
Notices are often taken into account by
regulators in identifying ‘poor performers’
to be the targets of enforcement action –
including the involvement of the Board or
CEO of a company
The perception of OHS performance may
affect relationships with workers, HSRs
and unions
Allowing a notice to remain may
encourage investigation and prosecution,
while the setting aside of a notice may
persuade the regulator that there has
not in fact been a breach.
A prohibition notice may be issued where
an inspector reasonably believes an
activity at a workplace involves a serious
OHS risk from immediate or imminent
exposure to a hazard.
There are many reasons why you may wish
to apply for a review of a notice:
You do not have control over the activity
and therefore cannot ensure compliance
A recommended process
for your business
The notice may direct that an activity
cease at least until an inspector is satisfied
the risk has been addressed. This may
prevent you running a key part of your
business, or area of your facility, or require
you to procure equipment or make
modifications before you can do so.
The notice is unclear and you cannot
be certain how to comply
We recommend that organisations have
in place formal processes through which:
You can challenge a notice
For these reasons, the laws allow people
affected by the notice to seek a review of it.
Implications of not seeking
review of a notice
Leaving a notice unchallenged can seriously
affect the operations of the organisation,
key relationships and influence actions by
other people, including:
Requiring costly steps that may not be
legally required or necessary for health
and safety
Putting the business at risk of breach
of the notice and a heavy fine
The receipt of a notice is immediately
escalated to senior management.
The facts relevant to the notice are
considered, including existing risk
control measures.
4
The wording of the notice is
checked for clarity.
The ability to comply, associated
5
6
7
costs and other measures are
assessed.
Obtain legal advice on the
implications of the notice
and whether a review may
be appropriate.
All of the legal, operational and
other business issues and
information are considered.
A properly informed and
considered decision is made.
issue 1, 2015
An inspector or HSR must have a
reasonable belief of breach or risk before
issuing a notice, but need not be certain
and may not have all available information.
They may have a different opinion to
the organisation on technical issues or
on what is reasonably practicable in
the circumstances.
There are already appropriate measures
in place or the required steps cannot be
taken, at all or within the time required,
or are excessive.
1
2
3
LASA VOICE AUTUMN EDITION
A failure to comply with an improvement
or prohibition notice is a serious offence.
The risk does not exist or the breach
has not occurred
19
COMMUNITY CARE
TASKFORCE
This Taskforce has been in operation since 2006 and has continued through
the peak body changes that have led to LASA Victoria. This is a well-attended
meeting, whose participants are representatives from agencies (both private
and not-for-profit, community based and mission based) who deliver care and
services in the home and community in metropolitan, regional and rural areas.
It also serves as a forum to network with other providers.
The purpose of the Community Care Taskforce is to:
Provide information, feedback and support to
LASA Victoria on issues of importance affecting
the day to day operation and/or future operation
of community and home care providers in Victoria.
Assist LASA Victoria (through the provision of
information and feedback) in the preparation of
issues papers and policy statements in relation to
community and home care in Victoria.
Provide feedback and comments on relevant
issues papers and/or policy statements by LASA
on national issues.
Provide feedback and comments on issues papers
and/or policy statements prepared by the
Commonwealth and/or State Governments on
community and home care.
Provide input on topics for seminars run by LASA Victoria.
Stimulate discussion and debate on issues of importance to
LASA Victoria Members who are providers of community
and home care.
Assist LASA Victoria to prioritise the most important
issues LASA Victoria should be considering and advocating
for in relation to community and home care.
Appoint interim sub-committees and working groups
from the Taskforce as required to work on specific issues
identified by the group. Non-members of the Taskforce may
be appointed to specific sub-committees and working groups
depending on the level of expertise and knowledge required.
Assist LASA Victoria to achieve the goals and objectives
outlined in its Strategic Plan.
To join this group please contact Rebecca Smith, Manager Community Care and Retirement Living at:
[email protected]
Important Safety Information For Packaged Care Providers
In 2013 the Victorian Coroner recommended:
“In homes where community care is to be provided and there is no smoke alarm, the
installation of a smoke alarm is organised in line with service provision.”
Victorian Coroners Court Reference COR-2008 2158
To support packaged care providers, the Metropolitan Fire and Emergency Services Board have formed a
state-wide smoke alarm buyers group to coordinate the bulk purchase of smoke alarms with:




A built in 10 year long life lithium battery which eliminates the need to ever change the battery
The lowest possible unit price – the last buy reduced the price from approximately $37 RRP to $17
Printed advice on the cover – 10 yr. long life battery alarm- replace entire unit in 2025
Free delivery
To go on the mailing list for the next buy or for more information contact either:


20
[email protected]
Acting Station Officer Nick Petersen (03) 9420 3881
Denise Mitchell, Manager Residential Services
Leading Age Services Australia – Victoria
EMBRACE TECHNOLOGY
FOR TOMORROW’S
CUSTOMERS
The face of the aged care industry has matured over the past ten years in the area of technology and
the future is bright for those providers who embrace change.
S
ome of the areas where
changes have taken place
include medication, from the sole
responsibility of the registered
nurse to assistance with administration
by personal carers from medication
bottles to dose administration aids.
Equipment improvements span from
bed rails to sensor mats and electronic
surveillance. Documentation from hard
copy to electronic soft copy. Consultation
changed from face to face to the use
of telehealth for distance specialist
review. Family appointments for care
consultation at times use email, skype,
teleconferencing.
The changing demographic of our
customers will forge a future where greater
emphasis on connectivity to enhance
social inclusion, and the use of technology
to assist in the management of care for
the residential sector will be the norm.
Technology allows the potential to
improve the quality of aged care by
empowering providers with operational
efficiencies, increased transparency of
information systems, increase capacity
to manage resources and potentially
carers with more time to deliver care.
In the past 12 months better practice
awards have been given to services who
have utilised technology such as iPads
as a medium to keep residents in touch
with their families’ friends and reduce
social isolation.
This has proven to be a boost to
residents’ independence as well as
a great marketing opportunity for
services available.
The development of assistive technology
is a space many technology companies
have entered.
Apple is in the midst of releasing a watch
which can record blood pressure, heart
rate, cholesterol levels and integrates
apps which will challenge conventional
methods of clinical monitoring.
Blood glucose levels may be monitored
at five minute intervals as this technology
allows communication between fine
sensors under the skin of the resident,
the size of a human hair, and the watch.
The company has ‘A Health’ app which
will monitor health data such as calories
and sleep and potentially communicate
with hospitals when variables are recorded
outside healthy ranges.
Proteus Digital Health have developed a chip
tracking system, the size of a grain of sand,
attached to medication allowing family to
trace whether their parents have taken their
medication. This may be great value when
residents have compliance issues related to
cognitive impairment or support clinical trials
of pharmaceuticals.
Technological advancement will be limitless in
the future, where GPS tracking devices can
be imbedded in mobile watches and clothing.
SO WHAT CAN PROVIDERS
DO NOW?
Be prepared for the new customer and
their expectations, the resident or their
relatives will be users of technology.
Consider the value new technology may
add to, or save your service.
Given the success iPad apps have had
on engaging residents and their families,
consider asking new residents to purchase
an iPad. Train care staff in its use and
assist residents.
iPad apps are also available and can
register visitors, families and schedule
visits and know when others have visited.
issue 1, 2015
Technology will never replace the direct
interaction between carers, resident and
their families however, it may assist to meet
the new challenges our customers want in
the future.
LASA VOICE AUTUMN EDITION
Families often discuss their primary
interests lie in ensuring their relative is
as ‘happy as possible, taken care of
and not lonely in the new environment’.
Technology would enable the resident
to keep them connected to family and
friends by sending photos of activities,
short messages and engaging with
grandchildren.
21
2014 winners, left to right: Outstanding
Graduate: Zoe Sabri, Nurse of the Year: Stephen
Brown, and Team Innovation: Prof Jeanine Young
representing the Pepi-pod® Program.
Know someone in nursing
who deserves an award?
Nominate them for a 2015 HESTA Austalia Nursing Award
in one of three categories:
Nurse of the Year
NomiN
atE
NOW!
Team Innovation
Outstanding Graduate
30,000
$
*Generously supported by:
in prizes to be won!*
Follow us:
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Issued by H.E.S.T. Australia Ltd ABN 66 006 818 695 AFSL No. 235249 Trustee of Health Employees Superannuation Trust Australia (HESTA) ABN 64 971 749 321.
Terms and conditions apply. See hestanursingawards.com for details.
Grant Corderoy, Senior Partner
StewartBrown
ACCOUNTING FOR COSTS OF
CONSUMER DIRECTED CARE
Over the past 18 months providers of Home Care Packages have been grappling with the move to
delivering services using the Consumer Directed Care (CDC) methodology. It is understood that by
late 2014 only 11 per cent of packages were being delivered on a CDC basis which means that there has
to be a huge shift by providers over the coming months to transition existing packages to the new
methodology. This shift will require several things to happen.
S
ome of these changes relate the
culture of services delivery and
the types of interactions that
providers will have with care
recipients. However, some of the major
changes will relate to systems and
processes in the back office.
There are several areas in back office
processes that will require attention
including the interactions between
existing systems, use of technology
to streamline processes and collect
necessary information, identification
and measurement of costs, recognition
of revenues and measuring profitability,
and new reporting mechanisms for
care recipients.
Some of these things will be easier to
resolve than others and some will require
a new way of thinking about existing
business processes.
However, more importantly, providers
will need to start identifying which costs
go into specific service deliverables.
The reason for this is they need to ensure
the selling price they set for these activities
is going to cover the costs. The selling
price should ideally include a margin over
and above the costs. The difficulty that
many providers will and are finding with
this process, is that current systems do
not collect the information they require.
Providers should look at this transition
as a positive rather than a negative.
They will better understand their business
by drilling down on what the actual inputs
are to each service it provides. They will
better understand the variables that affect
service delivery.
It will find out whether or not it can maintain
a competitive price on its services while
covering all costs of providing that service.
It will be better able to measure variances
between actual costs and budgeted costs
at a micro level rather than at a macro level.
It can use these standard costs and hours
of service to measure the performance of
those delivering the service.
Providers will also be able to ascertain
whether or not they are the best ones to
be delivering the service – should they be
brokering a particular service to a specialist
in that area who can provide the same
level of service at a cheaper cost?
So there will be challenges associated
with this transition but the results will be a
better understanding of how day-to-day
decisions affect costs and ultimately the
profitability of the service.
issue 1, 2015
In the past, the majority of home care
providers looked at costs at a program
level, that is the total cost of providing
a package of services. In one respect
this will remain the same in so far as
Government is likely, for the time being
in any event, to require providers to
report back to them on a program by
program basis.
Even from a management point of view,
profitability by program may still be the
preferred level at which profitability is
measured. This may change over time.
LASA VOICE AUTUMN EDITION
Let’s examine just one of those areas and
that is the identification and measurement
of costs associated with service delivery.
Providers will also be able to ascertain
whether or not they are the best ones to
be delivering the service – should they
be brokering a particular service to a
specialist in that area who can provide the
same level of service at a cheaper cost?
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