Public Residential Care; Privatisation – Ethos & Reality

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