Navigating the Future of Aged Care: Challenges and Opportunities for Providers
The aged care industry in Australia is currently facing unprecedented challenges. Providers are being pressed from all sides to deliver high-quality care to older Australians while grappling with escalating operational costs and a looming workforce crisis.
At the forefront of these challenges are:
- Workforce supply issues – the alarming annual shortfall of approximately 35,000 workers, with projections indicating that this gap could widen to over 400,000 by 2050 (Committee of Economic Development of Australia (CEDA)).
- Increasing aged care demand – the shortage of aged care service workers comes at a time when many older Australians require increased support, intensifying the demand on aged care services.
- Higher operating costs – the increasing operating costs of aged care service providers are resulting in very low margins, with nearly half of all residential care facilities operating at a loss.
- Increasing regulatory requirements – the impending legislation (Aged Care Act 2024) set to take effect in November 2025, introduces a substantial regulatory transformation for Australia’s aged care sector, which will further compound issues. The additional regulatory costs and requirements will further impact providers already struggling with thin margins.
With these trends in mind, it is more crucial than ever for aged care providers to rethink how they deliver services and adapt to be more cost-effective, whilst providing high-quality care and ensuring alignment with regulatory obligations.
Providers need to think about:
- Evolving operational models to enhance efficiency – ensuring that care staff can maximise their time spent with residents and clients while simultaneously complying with regulatory obligations.
- Smarter reallocation of resources – as workforce shortages continue, providers should focus on areas where they can make the most significant impact, and remove the ‘noise’ of ineffective activities, ultimately enhancing the quality of services offered to older Australians.
- Embracing innovative strategies and seeking expert assistance – will better enable organisations not only to navigate the current landscape but also to position themselves for a more sustainable and effective future.
In these challenging times, aged care providers must act decisively.
IQ Life specialises in supporting aged care providers with unlocking capacity and transforming their service delivery and processes. We can help with Operating Model assessment, and optimum target state design and implementation, providing you with more time and energy to focus on what’s most important – providing care.
For more information on how IQ Life can support your organisation in adapting to these challenges, please get in touch.
Together, we can pave the way for improved care and a sustainable future for aged care providers.