Retirement village operators must factor in care

For years, the retirement village sector has been very clear about what its model is. Housing. Community. Lifestyle. Not aged care – ever. 

At the National Retirement Living Summit, Aveo by the Living Company’s CEO Tony Randello recalled how the sector has spent decades establishing that retirement living is not aged care.  

Tony described a future where his residents will “dial up” and “dial down” services as their needs change. 

Is it time to redefine what a retirement village is? 

Whether operators realise it or not, this is a fundamental shift in the retirement village model. 

Traditionally, the services residents receive have been largely fixed, funded through the recurrent charge and village budget. 

The concept of dialling up services enables operators to facilitate access to transport, domestic assistance, meals, personal care, allied health and home care services.  

The industry’s next evolution may not be about building more villages – it may be about redefining what a village is. 

Residents are entering villages later in life. They are staying longer.  

At the same Summit, Uniting NSW.ACT CEO Tracey Burton reminded delegates that Australia cannot build enough aged care beds to meet future demand. 

Operators are responding to this reality by thinking about the resident experience beyond basic lifestyle needs. 

Not because legislation requires it. But because the reality is there is nowhere else for residents to go. 

Many of these same themes emerged in a conversation with Ryman Healthcare CEO Naomi James for this week’s edition of SATURDAY. 

Naomi observes that residents are staying longer.  

More than half of Ryman Healthcare’s serviced apartment residents already receive Government-funded home care, while around a quarter of independent living residents also access funded support. 

Naomi believes care will increasingly be delivered across the entire village rather than inside a dedicated aged care building. 

The bridge nobody planned for 

Retirement villages are not aged care. 

But if services and care become something operators can “dial up”, residents will continue to stay longer at a time when aged care capacity remains constrained. The distinction becomes harder for the sector to maintain. 

Retirement villages are increasingly becoming the bridge between independence and aged care. 

The question for operators is whether the funding models, workforce models and business models are evolving quickly enough for the responsibility that bridge now carries. 

Read our full interview with Naomi James in this week’s SATURDAY digital magazine. Not a subscriber? Click here.