budget 2018: moving towards a consumer demand driven system – baby steps

The Legislated Review of Aged Care 2017 – the Tune Review, described that “there is a broad consensus shared by government and sector stakeholders that aged care requires further reform to become a more consumer-centred system. This includes orienting care and the supply of different care types around the demands of consumers, and giving consumers greater choice and control.”

Responding to this, buried on page 147 of 472 in the Federal Budget Health portfolio statement of May 2018, the Government announced that it ‘provides in-principle support for the transition of residential places to the consumer, pending a detailed analysis of the impacts of such a model.’ Reported by Rick Morton in the Australian newspaper today ‘the Government has allocated $300,000 to conduct an ‘analysis’  of the impact of unshackling residential aged care funding from providers and giving it straight to the people’.

This is a baby step in the reform process. The turbulence and disruption experienced during implementation of a consumer focused home care model and the transition of disability services to the NDIS model both provide valuable information for market transformation.

With the 2018-19 Aged Care approvals Round set to release a further 13,500 residential aged care places to providers there is still some way     to go until the market is deregulated.

That said astute providers with an eye to the future will be developing and implementing business and service models that are consumer centred and be attractive in a contestable market.

The Ideal Consultancy is a trusted advisor to some of Australia’s leading aged, community and retirement living organisations. Ideal enables aged care providers develop strategies and opportunities for growth through service innovation.

If you would like to discuss how to position your organisation to thrive in a  more contestable and competitive environment please contact Louise Greene, or Fiona Somerville, via  hello@theidealgroup.com.au  or 1300 179 675.