HealthCare Providers NZ8 August 2005
Rod Young
CEO
Aged Care Association
Australia
2
The Residential Care Sector
3
The Residential Care Sector
• 2963 facilities
• 1450 providers
• 160,000 staff
• 156,000 operational residential places
• 30,000 operational community places
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History of the Sector
• Commonwealth funding responsibility
• Cottage industry till early 1990s
• 1997 major reform
• Corporate consolidation
• 60% / 40% voluntary/private operators
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History of the Sector…cont’d
• 60% less than 60 beds
• $2M + business
• Totally dependent on Cth. subsidy
• Income inflexibility
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History of the Sector…cont’d
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History of the Sector…cont’d
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History of the Sector…cont’d
• 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
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2001 Election Campaign
KEROSENE BATH
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2001 Election Campaign
• Concerted Campaign
• Industry wide message
• National Aged Care Alliance
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2001 Election Campaign
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2001 Election Outcome
• Small increase in subsidy
• Promise to carry out major
review of sector financial
viability
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Member frustration
• Review commenced Oct 2002
• Many facilities struggling to
survive
• can see writing on the wall
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Preparation for 2004 Election
• Threat to stop admitting residents
• Agreed to prioritise admissions
• Clear signal to Canberra
• Meeting called by Minister
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Preparation for 2004 Election…cont’d
• ACAA Fighting Fund
• All states supported
• All members contributed
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Preparation for 2004 Election cont’d
• Selecting a media/lobbyist
• Tender Process
• Target Audience (Public or Cabinet)
• Strategy (3 Phases)
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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
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Preparation for 2004 Election cont’d
• Needed to especially target PM & cabinet
• Selected Jackson Wells Morris
• Concentrated on the major issues
• Active Minister
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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
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Preparation for 2004 Election…cont’d
• Review due December 2003
• Delivered April 2004
• Government responded 2004/05 budget
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2004/05 Budget Outcomes
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2004/05 Budget Outcomes
• $2.2B over 4 years
• Increase to subsidy 1.75% 7%
• $513M capital allocation
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Objectives substantially achievedthrough budgetSome 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
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Stage III strategy
• Continued media targeting
• Encouraged members in marginals to
target members & candidates
• Sought aged care election policy
launches from both majors
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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
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Election 2004 Outcomes
• Coalition returned
• Continue with current agenda
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Election 2004 Outcomes
Thank you
