Topic: Changing The Financial Balance Of Approved Providers Moving To A Rad Less World

Day: Tuesday 13 October 2020

Time: 1:30pm-1:50pm AESDT

Abstract:

This topic will address the systemic constraints within the existing financial model of aged care and explore alternative structures and strategies that providers may adopt or consider to shore up their business.This topic will address the systemic constraints within the existing financial model of aged care and explore alternative structures and strategies that providers may adopt or consider to shore up their business.
The recent 8th ACFA report on the industry issued in June 2020 identified important trends in relation to how the business and sources of funding of aged care has changed over the last five years.  The emergence of additional services, the drop in extra services and the greater emphasis and discussion on co-located care services show that the industry is fundamentally changing its investment in aged care and the sources of funding that investment.
This presentation will consider the “capital stack” of an aged care provider with its current reliance on RADS as a major source of funding.  As the RAD/DAP mix continues to change, the options open to a provider to replace the RAD funding need to be considered to ensure the ongoing funding of the business.  The recent pandemic has accelerated providers’ need to review their balance sheets, investment strategies, use of RADS and credential obligations.
The discussion will address:• the concepts of Prop Co/Op Co options and the opportunities and pitfalls of these structures;• accessing resident ‘equity’ in their RADs or other assets to assist residents to fund their ongoing care needs• the role of third party funders, banks and even family• repayment obligations of RADs upon departure and the impact of delays.
The presentation will also consider the Consultation Paper issued by the Royal Commission in June 2020 addressing funding of the sector and will also review the hearings into the funding of aged care conducted in September 2020. You warrant Mark BorelloThis presentation will consider those issues and provide practical examples and possible solutions that providers can consider to address the changing financial landscape.

Biography:

Arthur Koumoukelis is a partner at Thomson Geer, specialising in the aged care, retirement and seniors living communities. Adviser to the sector since 1995, Arthur has been consistently awarded Best Lawyer since 2011. Advising on all aspects of corporate structures, governance, operations and development, and appearing in major courts and Tribunals on decisions affecting the industry, Arthur has developed both expertise and industry experience. He has been principal adviser on major landmark developments including Mark Moran Vaucluse and Watermark at Harbord Diggers. He has developed financial products for the industry and has advised parties in Malaysia and Singapore in investing in these communities. Arthur has applied his industry, legal and business acumen to act as a director for a number of charities. He currently sits on the board of The Vasey Housing Association and is a member of a number of Finance Audit and Risk Committees in the industry.