Catholic Health Australia Pricing Aged Care August 2012 Cam Ansell National Director Aged Care and Retirement Living Services

Pricing in Aged Care Approach to Pricing in Australia Today Costing Complexities and Opportunities Strategies to Move it Forward

Robert Reich – "Greying is the Biggest Threat"

Demand for Aged Care Services

Aged Care Prices in Australia Today Some distant origins to cost, now largely performance and indexation based. Most developed countries have stronger linkages to actual "efficient" cost bases and clearer delineation between user costs and subsidised costs Productivity Commission recommended a comprehensive, independent Cost of Care Study. Living Longer, Living Better package does not provide for this.

What Would a Cost of Care Study Tell Us?

What Would a Cost of Care Study Tell Us?

What Would a Cost of Care Study Tell Us?

What Would a Cost of Care Study Tell Us?

But there is Opportunity!

Designing a Sustainable Solution Subsidy / User Pay Economic Sustainability Commercial Viability Industry Objective

Productivity Commission Solution

Pricing Considerations in Aged Care Efficient Cost Drivers Care Needs Dependence/acuity levels Changing and increasingly complex Environment Service efficiency / layout Geographical location Consumer Expectations Accommodation and service quality Privacy and personal space

1. Changing Care Needs

2. Service Efficiency

2. Service Efficiency

3. Consumer Expectations

Construction Costs Per Bed

Designing a Sustainable Solution Subsidy / User Pay Economic Sustainability Commercial Viability Industry Objective

Getting it Right – Cost of Care Study Clarity Around Objectives Encourage choice, investment, innovation and competitiveness Reality Check – Output Protecting the disadvantaged Project Design Governance - managing politics and self interest Financial and economic capabilities Open and flexible to possible outcomes and future models/directions Costing Study Clear linkage to objectives Recognition of key variables Realistic timeframe and expectations on data available Consultation and shared ownership (pushed if necessary)

Questions