Domain Principal Group CEO Gary Barnier is “frightened”

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In what this writer believes is the most important public statement this year, Gary Barnier in his presentation at the Catholic Health Australia’s conference this week stated he is frightened by the fact that consumers do not see value in the services provided by the aged care sector.
He said “The Government has set a framework that means some of that (money) is going to have to come from (consumers) and I don’t know how ready we are for that conversation. We are going to be standing in front of our customers and saying, you need to pay us more”.
“For me, I think this concept (of value) is absolutely essential for a viable and flourishing sector. This is one of my biggest concerns right now. I am frightened consumers don’t see the value”.
Gary Baird was joined by Mike Woods, Productivity Commission Deputy Chairman, who also hammered the importance of the sector establishing the value proposition, citing that care recipients are more informed and that aged care is moving away from a ‘rationed system’ to an ‘entitlement model’ or user pay discretion, empowering the customer. As Gary Barnier suggests, the question will be “why should I choose you”? He says providers need to be working hard to reshape messages to communicate services that deliver recognised value to customers.