Topic: The MyCDC Financial Modelling system for Residential Care providing funding transparency leading to an increase in Additional Services charges.
Day: Thursday 22 October 2020
Time: 3:30pm-4:00pm AEDT
The recent release of data on the financial health of residential aged care indicates that many providers are operating at a loss. The data predicts a grim future for providers.
Years of decline in real funding is now starting to bite. Faced with the prospect of inevitable decline, the capacity for residential aged care providers to remain viable will rely on their ability to offer residents additional services.
To do this a transparent system for funding and charges needs to be in place. Otherwise providers are likely to encounter difficult outcomes. For example, in a recent court case the ACCC successfully prosecuted a provider who consequently was required to repay amounts charged.
The MyCDC financial system (software) developed for residential care gives transparency of funding and provides the basis for charging additional services. This model has been successfully operated in several organisations and has led to an increase in operational results and customer satisfaction.
The system enables the resident’s awareness of the funding and the charges, paving the way for them to understand how funds are allocated what the costs would be for other additional services.
The fact that residential aged care providers have never had to disclose funding or be transparent in the past is often seen as a major hurdle. Accounting systems have previously been a private administrative matter.
In a transparent system, residents understand the flow of funds and are willing to contribute more for services. In some cases, they become advocates for the provider.
Importantly, in this type of system, no one misses out on the services they need each day but if they want more, they pay for them.
Charging for additional services without full financial transparency is difficult. Often the resident and their families are unsure how their money is being used or the basis for any additional charges.
The MyCDC financial system sets the ground rules for additional charges, allows the resident and families to determine value for money and the provider to recover costs and make additional margins.
Nobody wants to be sold anything and providers don’t want to be salespeople. People want access to their choices, but they need to understand there is a price to be paid if these exceed the funding.
There are no other systems in place which allows for additional services charges to be based on full acquittal of existing funds. The MyCDC financial model does this.
Mark is an independent consultant currently working with a range of aged care and health providers from large to medium and small sized Retirement Living, Home Care, Residential and Health care providers. His consultancy also includes working with organizations that provide primary health care, public health services, aged care and disabilities services in metropolitan, regional, rural and remote regions of Australia. Each of these organizations are different and require advice across a range of services.
His latest work has been in changing the operations of residential care from an institutional model to one of communal living where people are able to live their lives the way they did prior to coming into residential care.
This has now been achieved with a number of organisations operating his model of normalisation for people living in residential care.