1. PwC HealthCare Providers NZ 8 August 2005 Rod Young CEO Aged Care Association Australia

2. 2 The Residential Care Sector

3. 3 2963 facilities 1450 providers 160,000 staff 156,000 operational residential places 30,000 operational community places

4. 4 History of the Sector Commonwealth funding responsibility Cottage industry till early 1990s 1997 major reform Corporate consolidation 60% / 40% voluntary/private operators

5. 5 History of the Sector…cont’d 60% less than 60 beds $2M + business Totally dependent on Cth. subsidy Income inflexibility

6. 6 History of the Sector…cont’d

7. 7

8. 8 1997 Reforms included COPO Indexation Government withdrew from responsibility for Capital Creation & reduced capital outlays by $500M pa 16% over 8 years CPI 26.5% over 8 years

9. 9 2001 Election Campaign KEROSENE BATH

10. 10 2001 Election Campaign Concerted Campaign Industry wide message National Aged Care Alliance

11. 11 2001 Election Campaign

12. 12 2001 Election Outcome Small increase in subsidy Promise to carry out major review of sector financial viability

13. 13 Member frustration Review commenced Oct 2002 Many facilities struggling to survive can see writing on the wall

14. 14 Preparation for 2004 Election Threat to stop admitting residents Agreed to prioritise admissions Clear signal to Canberra Meeting called by Minister

15. 15 Preparation for 2004 Election…cont’d ACAA Fighting Fund All states supported All members contributed

16. 16 Preparation for 2004 Election cont’d Selecting a media/lobbyist Tender Process Target Audience (Public or Cabinet) Strategy (3 Phases)

17. 17 Preparation for 2004 Election cont’d Major Impact on the Review Maximise Governments response to Review & 2004/05 budget If necessary, impact 2004 election process

18. 18 Preparation for 2004 Election cont’d Needed to especially target PM & cabinet Selected Jackson Wells Morris Concentrated on the major issues Active Minister

19. 19 Preparation for 2004 Election cont’d Focussed media campaign Assisted members to work with local members Briefing to Parliamentary Committees MP Campaign Selected Cabinet Ministers

20. 20 Preparation for 2004 Election…cont’d Review due December 2003 Delivered April 2004 Government responded 2004/05 budget

21. 21 2004/05 Budget Outcomes

22. 22 2004/05 Budget Outcomes $2.2B over 4 years Increase to subsidy 1.75%  7% $513M capital allocation

23. 23 Objectives substantially achieved through budget Some outstanding issues capital raising capacity (bonds) competitive wages benchmark of care dementia funding excessive red tape Ageing/Aged care to be upgraded to senior cabinet position

24. 24 Stage III strategy Continued media targeting Encouraged members in marginals to target members & candidates Sought aged care election policy launches from both majors

25. 25 Stage III Cont’d PM announced dementia funding during policy launch $200m & since confirmed in 2005/-6 budget ALP launched aged care policy committed to budget outlays committed to development of benchmark of care committed to solve red tape committed to review accreditation & complaints management

26. 26 Election 2004 Outcomes Coalition returned Continue with current agenda

27. 27 Election 2004 Outcomes

28. PwC Thank you