Considerations for aged care places and funding
September 16, 2014 | Aged Care Finance
Any growing industry can often struggle with demand, especially when increasing supply means substantial overhauls to operations. This is the challenge the aged care sector is set to face over the next few decades, and providers will need to take action.
The question is, what considerations need to be made in order to ensure preparedness?
Here, we'll take a look at growth in the aged care sector, the action facilities will need to take, and the necessity of funding strategies.
Resident growth and facility refurbishment
Aged care facilities are experiencing swelling populations as the population of the country ages and residential aged care becomes an increasingly attractive option.
In 2010, the the total number of operational aged care places stood at 179,749, according to the Department of Social Services. This increased to 186,278 in 2013. Further growth is a certainty in the coming decades.
An issue is raised, however, when considering the changing nature of facilities themselves. The Australian Institute of Health and Welfare found that the number of aged care facilities decreased by eight per cent between 2002 and 2012, but the number of places increased by 22 per cent.
Substantial increases in the number of places will lead to facility overhauls and refurbishments focusing on increasing the number of places. For aged care providers planning overhauls, the number of rooms is certain to be a primary focus.
The need for funding strategies
Aged care providers will need to ensure they've made appropriate funding considerations, especially given the fact that funds will need to be tightly controlled within sector.
Strong financial strategies are commonly the best approach, especially those that take into account future growth. By planning both revenue and expenditure over the next few years in line with residential population growth, facilities can be more effectively managed.
In addition, a strong focus on ACFI optimisation can help to further supplement available funds. By taking the time to both optimise ACFI and provide education to staff, there's greater certainty around future funding. They're also able to verify the claim during validation.
Sustainable funding isn't altogether difficult for aged care providers to achieve, and taking the time to ensure ACFI has been optimised and funding strategies are in place is the best approach given future aged care growth.
What do you think are the biggest opportunities for success in the aged care industry today? Please contact us and let us know!