Since 1 July 2015 Consumer Directed Care (CDC) has been a feature of the provision of services governed by the Aged Care Act 1997 (Cth) (Aged Care Act). Aged care providers will need to look to leverage its core skills of care into new markets and identify alternative sources of revenue and this includes the exciting opportunity that is the National Disability Insurance Scheme. From February next year these reforms will continue, placing further pressure on aged care services providers who will need to address consumer demands with regulated funding and do more with less to provide a more competitive service offering. End users will increasingly be less “sticky” and be able to move between service providers more easily as financial barriers to changing service providers are removed. This will create pressure for aged care providers in terms of:
- Managing cash flow;
- Workforce planning; and
- Maintaining profitability.
With both CDC and recently announced restraints to the Aged Care Funding Instrument, Aged care providers will need to look to leverage its core skills of care into new markets and identify alternative sources of revenue. One opportunity, with its national roll-out due on 1 July 2016, is the National Disability Insurance Scheme (NDIS). The NDIS presents opportunities for aged care service providers, facility services providers and human service providers to expand their product offering into a new market. Significantly the Productivity Commission has estimated that the Government will spend $22 billion per annum on the NDIS