On Friday, I was contacted by a CEO of a large For Profit aged care provider. He says in the past week, he has had conversations with three very experienced and well-intentioned aged care executives which has given him cause for concern.
I have re-printed the rest of his letter in full below:
“The Royal Commission and the terms of reference sought to uncover failure. The process and questioning in addition to the reporting has left one colleague feeling like ‘the way this is being reported and the Commission progressing, it feels like my life’s work in the sector has been for nothing’. The context for the comment was that when the failure in one home is extended to an implied assumption it was then a sector wide failure seems to be impacting.”
“Another commented that they had never experienced such negativity in the sector. Mental health issues, depression, sadness, and the loss of good people to other sectors, all at senior levels and in their opinion good quality people.”
“The last comment from a very experienced colleague left me feeling that those who have dedicated so much of their working life to the sector and made massive contributions can be assumed a failure because of one incident. Every provider has failed, most not through system or governance but through the poor actions of an individual, this can’t be excused and must be acted on and we would all prefer such this not to occur however how is it as an industry we can achieve what as a society we can’t?”
“In an industry where people care for people, I hope that as an industry we can survive, look after each other, so we can continue to care for the residents who deserve the best care and better care.”
“Does the industry have ‘the energy and excitement and will to make these changes’, I think very sadly with all that is transpiring we should be asking each other ‘Are you OK?’, because right now for a good majority the answer is no to both.”
They are powerful comments – and echo what I have been hearing from others in the sector.
In addition to the issue of mental health in the sector (a serious topic in its own right), there is a wider conversation to be had here.
During the Melbourne hearings on workforce last month, the CEO panel told the Commission there was a sense that some in the sector are ‘tired’.
Since then, I have heard from other providers who argue they are not ‘tired’ – rather ‘overwhelmed’ by the number of changes that organisations and their management have been forced to adapt to in a limited time.
By our back-of-envelope calculations, we expect to see an exodus of experienced CEOs from the 800-plus RAC operators in the sector – up to 60% – within three to five years.
This ‘passes the baton’ to the current middle management to fill the gaps.
Do they have the experience to step up? And will they want to step up?
At 35 to 45 years, they are in the peak of their career – and could seek positions elsewhere.
See Governance Institute of Australia Policy Manager Catherine Maxwell’s comments from my 17 November 2019, 198th edition report about how aged care management positions are not given the same prestige as those in the health care sector.
It all comes back to ‘capacity to pay’ – take banking as an example. The banks have the capacity to pay their executives great wages. Aged care does not have capacity to pay – so how do you attract the talent required?
How many high-level executives have come over to the sector in the last 10 years? Grant Millard left KPMG and Coca-Cola Amatil to lead Sydney’s Anglicare. Rachel Argaman was recruited to head up Opal Aged Care (albeit a big For Profit) in 2018 from the hotel industry.
They are exceptions rather than the rule.
Even the leading Not For Profits – where executives are joining out of a desire to do ‘good work’ – are now being told by the Royal Commission – and the media – that they are ‘cruel and unkind’.
Again, this will not attract people who will be willing to sacrifice their time and effort.
Much of the Royal Commission’s focus on workforce has concentrated on aged care staff and nurses.
Perhaps there also needs to be consideration given to supporting senior management and developing the ‘talent pool’ – after all, they are the generation that will be leading the “fundamental overhaul of the design” of the system the Commissioners have promised to put forward.
What are your thoughts?
