The CEO of the Victorian-based aged care, home care and retirement living provider for a decade, Sandra knows what she is talking about.
Note: this interview was conducted prior to Friday’s announcement by the Prime Minister.
Benetas has 13 aged care homes, one retirement village and one being built, independent living units, allied health and home care services across the state, with over 8,800 clients and more than 1,500 staff.
With the COVID-19 pandemic now forecast to last for months, Benetas has moved from crisis management to long-term planning and Sandra says other operators should consider doing the same.
Here is what she is thinking.
‘Slowing down’ on developments
As a result of COVID-19, the Not For Profit will be slowing down its developments and upgrades of its aged care homes and retirement villages.
The CEO predicts we will start to see a significant drop in the number of residential services and homes within years.
“I think in three to four years, we will see a lack of residential services in this country,” she said. “People just won’t be investing … it was already slowing down before COVID-19 because the government funding wasn’t there and I think that will be a real issue.”
Investment income has been hit
The CEO says while Benetas is financially sound, the operator has completed its budget for 2021 and they will take a hit of a couple of million dollars in income from their investments which will impact on their strategic direction.
Occupancy is down plus home care is down
Their residential occupancy is now at 93% from 98% two years ago, while home and community care has dropped 9% even though Benetas is rolling out the new resources provided by the Department of Health that ‘it’s okay to have home care’.
RADs are a question mark
While Benetas has not had to draw on its RADs, Sandra is aware many other providers have and says this would be a major concern for them, especially if they are not taking on new residents (Benetas is, subject to a two-week self-isolation requirement for those that have come from hospital).
Strategy is a three-month process: “Do less”
With their developments ‘on hold’, Sandra says there will be opportunities however to lift their heads up and look at the direction of their business.
Benetas plans to develop a risk management framework to pinpoint areas of risk over the next three, six and 12 months and also re-evaluate their current strategic plan (already reviewed every three months) and whether it is fit for purpose.
“I think it is still fit for purpose but we have got to measure and identify any opportunities in terms of the financial situation now,” she said.
“We will try to do less but focus more.”
“Some providers are going day by day but I think that is death if you are just going day by day.”
Quality Commission out in droves – and staff tired
The operator is also preparing for the Aged Care Quality and Safety Commission (ACQSC) to recommend its assessment contacts and also for staff to take leave in the wake of the pandemic.
“People are going to be really tired so we are going to need to do rostering so people can have time off and recharge their batteries,” she said.
“The Commission is going to be out in force too. Even though we are operating in a different environment, we still need to keep a strategic focus on risk.”
“Disappointed” by PM’s comments
Sandra says she is also disappointed by the Prime Minister’s comments (about family visits), saying one of their homes immediately had 12 phone calls from family members asking why they are not being allowed to visit.
“It does not appear that the Prime Minister and his advisors have thought things through very well,” she said.
Benetas restricted access to its homes to essential visitors on 19 March because of the risk to residents and Sandra says the response had been mostly positive.
They are planning to review their restrictions on 11 May, but will be taking a “measured approach”.
“We will be listening to the Victorian Premier, along with the Prime Minister,” she said, adding they may look at reduced visiting hours like hospitals.
Where is the funding to do the job?
However, the CEO says the major issue will be how they manage visitors once they do begin to ease restrictions because they will need staff to manage temperature testing, checking flu vaccinations and the number of visitors.
“Where are the funds going to come for that?” she asked bluntly.
Sandra says it is unclear at the moment whether aged care will receive any increase in the Commonwealth Own Purpose Expenses (COPE) next year – a real possibility given the hit to the Government’s Budget inflicted by COVID-19.
While Sandra welcomes the $445 million aged care stimulus package for providers, she says if the indexation doesn’t increase and the Budget is delayed until October, there will be a gap in funding for providers.
“We might be going for recession and deflation but staff salaries don’t change,” she concluded.
Even the current 1.2% for residential care and home care is not enough to fund a ‘concierge’, she added.
A question the Prime Minister may have to answer if the Government seeks to overrule providers.
Awarded a Medal of the Order of Australia (OAM) in 2017 for her service to older Australians and gender equality, Sandra also sits on the Aged Care Workforce Industry Council.
