GOVERNANCE & FINANCE
How to ensure quality care while maintaining financial viability What providers need to consider today Aged care reforms have brought significant changes to the sector, aiming to improve care outcomes for older people while supporting providers’ financial viability. However, recent findings from Stewart Brown’s sector report indicate that the number of homes operating at a loss has increased from 60% per cent in December 2021 to 63 per cent in December 2022.
Providers need to align their workforce’s skills mix with the resident case mix to ensure compliance. Various models of care exist within the industry, adaptable to regional availability constraints and the complexity of required care.
It is crucial to recognise that without financial stability, achieving high-quality care becomes unattainable. The industry has been slow to adopt new funding models in the past, directly impacting financial viability.
There is more funding available than ever before to contribute to improving care outcomes and business viability. The introduction of AN-ACC in October 2022 has significantly increased subsidy, surpassing the consumer price index (CPI) and awards.
To ensure older people receive the support and services they need for high-quality care, providers must quickly understand the aged care reforms and their organisational impact. What does this mean for providers? To support improvements in risk monitoring, the Australian National Aged Care Classification (AN-ACC) claim data will be shared with the Aged Care Quality and Safety Commission. This data, combined with other regulatory intelligence, will assess providers’ response to minimum care minute targets and the suitability of their skills mix within their services. Approved providers are also responsible, under the Aged Care Act 1997 for maintaining an adequate number of appropriately skilled staff to meet the care needs of recipients. Failure to meet these requirements puts residential aged care providers at risk of not meeting the Aged Care Quality Standards. 88
Katie Airey says the time is now for providers to ensure long-term financial viability.
How are providers balancing these requirements?
funding and care minutes, including forecasting changes related to new pricing and care minute levels. ■ Improve systems and data capabilities at the resident level to support decision-making on potential reclassification for funding purposes. ■ Establish a new process for reviewing all residents to identify potential AN-ACC changes every two to three months. ■ Streamline care minute reporting for quarterly financial reporting (QFR) and develop the ability to forecast positions within the quarter. ■ Evaluate the efficiency of rosters and determine the optimal balance between funding and care minutes for each site. ■ Implement an efficient rostering system with costed rosters and shift offers, enabling real-time decisions on cost and staff availability to minimise reliance on agency staff. ■ Initiate a review process for the new quality indicators, plan for the new standards, and assess their impact on operations. ■ Understand Star Ratings, how each element is affected by the above initiatives, develop an overall strategy and identify short-term improvements to ratings.
Balancing all these requirements is critical. AN-ACC and Star Ratings now integrate funding, care minutes (rosters) and quality more closely than ever before. With increased activity from the Aged Care Quality and Safety Commission, time is running out to address these issues.
Mirus Australia is currently assisting over a hundred providers each month in addressing these initiatives, lending a helping hand to providers that want to understand how they can maintain financial viability while providing quality care – something that should be a priority for the entire industry.
Here is a list of activities providers should prioritise:
Katie Airey, Manager – Quality, Risk and Compliance, Mirus Australia www.mirusaustralia.com
Legislation mandates that consumers receive high-quality care based on their individual needs, goals, and preferences. Strategies should not only deliver that level of care but also enhance trust and confidence in the aged care sector’s performance.
In July 2023, both the Aged Care Award and subsidy experienced the largest increases in Australian aged care history. Over the past eight years, wages and subsidies have grown by 36 per cent, with subsidies making significant progress in the last year. This affirms the Royal Commission’s recommendation that providers must allocate more funds to clinical and direct care.
■ Enhance management-level reporting
to provide oversight on daily