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

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

3. Robert Reich – "Greying is the Biggest Threat"

4. Demand for Aged Care Services

5. 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.

6. What Would a Cost of Care Study Tell Us?

7. What Would a Cost of Care Study Tell Us?

8. What Would a Cost of Care Study Tell Us?

9. What Would a Cost of Care Study Tell Us?

10. But there is Opportunity!

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

12. Productivity Commission Solution

13. 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

14. 1. Changing Care Needs

15. 2. Service Efficiency

16. 2. Service Efficiency

17. 3. Consumer Expectations

18. Construction Costs Per Bed

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

20. 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)

21. Questions