Retirement village operators are devising new ways for residents to pay beyond the deferred management fee (DMF) model.
Maddison Jones (pictured), Lutheran Services General Manager – Supported Living Aged Care, said the Not For Profit had introduced a flexible pricing model in its retirement villages in Queensland.
“It was due to the response of our customers who wanted discounts, asked if we could do something about the 30% DMF,” she said.
“We have put the decision in the consumer’s hands. They can pay less when they move in or pay more. We advise the consumer to talk away the contract, talk to their families, a financial adviser, before committing to it.”
Maddison said the flexible pricing has been trialled for 18 months and the response from customers has been overwhelmingly to pay less when they move in.
A number of operators are trialling different contract options for incoming residents.
Byron Cannon, CEO of LDK Seniors’ Living, told the LEADERS SUMMIT last week that the business uses a Village Membership model for fee paying. The LDK Membership can be paid in a number of different ways, either ingoing, ongoing or upon exit.
