The new Aged Care Act is now just 41 business days away from its 1 July implementation. Aged care providers have two options: automate and future-proof their systems now or stick to manual workarounds amid rising workloads and compliance risk. Is there really a choice?
The new Aged Care Act and its reforms will only succeed if aged care operators leverage technology effectively to manage the complexities of the new system.
From automating administrative tasks to integrating data systems and improving client care, digital solutions are no longer optional – they are a necessity.
The new Aged Care Act will usher in some of the most significant changes to Australia’s aged care system in decades – and you only have to look at some of the key reforms to understand their impact:
- Greater governance and compliance requirements: new penalties and oversight will require operators to better manage their risks and put more responsibility on boards and management.
- New financial and prudential standards: the introduction of enforceable financial and prudential standards, including minimum liquidity requirements for all residential aged care providers, are aimed at ensuring operators are financially stable.
- Integration of digital solutions: the Act encourages providers to adopt digital tools and systems. For example, changes to invoicing with Services Australia will require updates to IT infrastructure.
Plan A or Plan B
Under the new system, Darren Gossling, Managing Director of business and digital transformation consultancy Rohling, sees that operators have two choices – Plan A or Plan B:
- Plan A: Focuses on embracing automation and integrated systems to streamline operations, reduce administrative burdens, and maintain compliance with the new regulations.
- Plan B: Involves sticking with outdated, manual processes that could lead to inefficiency, compliance risks, revenue and cash flow leakage, and overwhelming administrative workloads.
“There’s no version of this where finance, operations and shared services teams can handle the new workload with spreadsheets and goodwill alone. These teams need to work together with a single future-proof view on compliance, efficiency and the customer,” Darren warns.
Plan A, therefore, is the only option.
For many aged care organisations, this will mean moving away from legacy systems and embracing cloud-based platforms, data integration, and automation.
So, how can you ensure your business is prepared for Plan A?
Here is the problem: there are only weeks, not months to get ready.
A well-organised, multi-pronged approach is needed. Operators need to quickly understand current state and risks then develop a roadmap for changes to technology, business process and up skilling of staff and teams.
This requires planning the basics first, and then prioritising and staging changes so that the most urgent foundational requirements are implemented as needed while investment decisions can be made in parallel.
Rohling, which supports residential aged care and home care providers across the country, conducts digital maturity assessments to help organisations map their current systems, spot redundancies, and plan tech investments strategically.
Many providers are running as many as 30 pieces of software and hardware – often disconnected and underused – across their business.
Rohling has deep expertise in leading significant business changes that must be integrated across technology, business process and the workforce.
“Efficient tech investment starts with clarity,” Darren explains. “Before you spend more, you need to understand where you’re leaking value.”
Once your systems are consolidated, you can look at replacing legacy platforms and spreadsheets with integrated tools that deliver a better return on investment.
Choose solutions that can be easily integrated
If you are looking at new solutions, integration is critical.
The specifics of the Aged Care Act reforms will require providers to be operationally efficient. This includes integrating a wide range of functions, from finance and billing to client care, nutrition management, and compliance reporting.
“It’s important to choose vendors with the right tools so everything works seamlessly together –ensuring information flows smoothly and you get a solution that fits your business, rather than having to rewrite your processes to suit the technology,” said Annette Hili, GM Australia & New Zealand of aged care software company AlayaCare.
Case in point: AlayaCare has recently announced a partnership with safety management and meal ordering software Simple Foods. The goal is to integrate its technology into its residential platform and meet the strengthened care standards contained in the new Aged Care Act Standard 6, which relates to food and nutrition.
Support at Home requires management of multiple services and prices
One of the major challenges for home care operators will be aligning their digital systems with the new Support at Home Program.
Unlike traditional residential aged care, home care requires flexible, scalable systems that can manage a wide variety of services and pricing structures.
For example, cloud-based platforms that enable real-time access to data, allowing staff to adjust care plans based on immediate needs and changing circumstances.
AlayaCare has recently launched the Client Intelligence Suite, a tool that utilises AI to generate automatic alerts to care staff of potential risks for clients and reduce admin time, for its home care clients.
“Technology allows us to be more proactive in how we manage care,” Annette added. “By using data and analytics, we can identify trends early, ensuring that clients receive the best possible care, tailored to their individual needs.”
Top tech tips for preparing for the new Act
- Review and update your service and registration categories in line with the new service list.
- Obtain registration as a service provider for the updated categories.
- Verify your organisation’s information, services, and pricing in the Government Provider Management System (GPMS portal), and ensure staff are trained to use the GPMS effectively.
- Update your funding and payment processes to ensure claims can be submitted correctly.
- Revise business processes and IT systems to reflect any changes to services, standards, and reporting requirements.
- Contact home care clients to establish new service agreements.
- Check with your technology vendors about any updates or changes they are making to their systems.
Automated billing is essential
While residential aged care is not facing the same level of technological disruption as home care, operators will still be required to streamline their systems.
Automated billing systems integrated with their finance platforms can help to ensure accurate invoicing, reduce administrative errors, streamline their reporting processes, and ensure your claim to Services Australia is accurate.
Ben Woolley is the CEO of Redmap, a software platform that integrates with AlayaCare and ERP systems to automate invoice processing.
“These reforms are an inflection point wherein the department have forced change on the sector. Those providers who embrace change and look to build sustainable strategies to operate their businesses will be in the driver’s seat,” he stated.
AI and automation can also offer major efficiencies, especially in documentation, rostering, reporting, and decision-making support.
“The question is how do you approach it? I would recommend start with a holistic view of your technology platform, identify the projects that have the greatest ROI to start with and automate everything you can,” Ben added.
Privacy and data
Another key issue to consider is secure data sharing and increased data expectations under the new Act.
If you are still relying on manual processes, this is the time to develop a strategy for digitising your documentation and information handling.
“You need a solid strategy in place – that’s what will save you in the long run. The new Act puts much more pressure on providers to manage data properly,” said Annette.
“There’s now a greater burden of proof: you need to keep detailed records, demonstrate that you have a plan for data retention, and ensure records are properly destroyed after a resident leaves. It’s a lot more rigorous.”
Cost
The final consideration – of course – is cost.
While some providers are ahead of the curve, many still face substantial barriers in upgrading their systems to meet the new requirements.
The Government has offered a $10,000 digital transformation grant for operators to assist in the transition.
However, many providers are expected to spend upwards of $100,000.
Operators also need to budget time and resources for adoption, culture change, and embedding the use of new technology, not just implementation.
For Ben, the key to navigating these financial pressures lies in smart, long-term planning.
“It’s important for providers to see technology as an investment, not an expense,” he says. “The returns in terms of efficiency, compliance, and client satisfaction will far outweigh the initial outlay.”
For smaller providers without a CIO or IT department, their technology vendors can often ‘fill the gap’ in knowledge.
Rohling acts as a ‘virtual CIO’ for its clients to guide system decisions for smaller operators and act as a strategic partner for larger organisations.
“Digital transformation is not one-size-fits-all,” said Darren. “We meet providers where they are –and help them move forward.”
The message is clear: doing nothing is not a safe option. Aged care providers must prepare – or risk being left behind.
