Facing the Consumer Led CDC Competition 1 September

Facing the Consumer Led CDC Competition 1 September 2016 Damian Foley Head of Community Care

Ozcare - Community Care three broad areas • Community Programs § Primarily Community Aged Care § Aged Care Packages (CDC) and CHSP and QCCS funded services § NDIS • Social Inclusion Programs § Homeless Men's Hostels § Women’s Refuges § A+D services § Mental Health • Residential Aged Care § 10 residential aged care facilities with another 3 in build

Community Programs • General and specialist Nursing • Home and Community Care (QCCS) and (CHSP) – In Home, Centre Based Respite • Dementia specific services • VHC • Allied Health • Home Care Packages (CDC) • Veterans’ Home Care (VHC)- state- wide service provisions. • Immunisation • Assistance with Care and Housing for the Aged (ACHA). • Contact Centre

Social Inclusion Services 10 Hostel Services 8 Drug and Alcohol Services 6 Domestic Violence Services 4 Family Support Services 6 Supported Accommodation 3 Disability Support Services Mental Health Programs

Community Care - Locations Brisbane South Bundaberg Cairns Central Highlands Dalby Gladstone Gold Coast Hervey Bay Ipswich Logan Mackay Malanda Miriam Vale Mount Perry Noosa North Lakes Rockhampton Sunshine Coast Toowoomba Townsville Warwick

Community Care – Context 2015 Intergenerational Report – By 2056 one in four will be over 65 and 1. 8 million will be over 85 – Life expectancy will be 95 years 2015/16 Budget – From February 2017 funding for a home care package will follow the consumer. Consumers will be able to change their provider with ease There is portability of funding for the consumer. Consumers receiving home care will be able to move between approved providers. The package including any unspent funds will move with the consumer to their new provider. Changes to the arrangements for approving providers. This includes, updating the suitability criteria for approving providers; streamlining the process for becoming an approved provider; and providing a simple model for existing residential and flexible care providers to also provide home care.

Community Care – Context – ACAT’s will continue to determine suitability and allocate specific package level to the consumer – My Aged Care will manage a waiting list for consumers – Likely to see more sub-contracting of services driven by the consumer – No change to the fee structure. – The market place will become busy with new providers – Providers must comply with home care standards (there will be a single national quality framework for all aged care services)

Community Care – Context ‒ From July 2018, the government intends to integrate the Home Care Packages Programme and the Commonwealth Home Support Programme (CHSP) into a single care at home programme ‒ In designing the integrated care at home programme, a number of transitional issues will need consideration: • How providers will be approved or registered to provide care and services; • Consumer contributions and fee arrangements; • The quality framework that will apply in respect of the new programme (noting that this will dovetail with other reforms aimed at introducing a consistent quality framework across all types of care); • How existing consumers of each of the programme types will be impacted; • The timeframes for transition.

Facing the Consumer Led CDC Competition • Meeting the new market driven competitive challenges • Responding to the consumers’ needs and demands • Achieving effective cost structures and service pricing • Rebranding and repositioning your organisation

Meeting the new market driven competitive challenges Consumer Driven Environment – We know consumers will be more empowered and demand different and tailored services – Our challenge will be to meet these demands but also have a pricing structure to meet costs of delivering various models of service. . . – This may also require specific and tailored partnerships with other aged care providers – It will require changing our staff models – this requires a major philosophical shift. Staffing Models to match – What are the most efficient staffing models (independent contractors) – Consideration needs to be given to unions and EBA’s – All staff need an understanding of the customer service environment Yes we can! – What skills will the future workforce require (customer services? )

Meeting the new market driven competitive challenges Undertaking a competitive analysis project to consider current strengths and our current position within the Queensland environment. • • What is the true cost of doing business? (unit cost/comparison) What is our Point of Difference? What is the client experience when they go shopping for a provider? How do we use Social Media? How do we market ourselves? More on this later. • How do we respond to this new engaged consumer?

Responding to the consumers’ needs and demands The overarching approach from Ozcare • Consideration given to Ozcare Attraction and Retention strategy. • Ozcare undertaking client surveys to ascertain why a client stays - Why they leave / what they say and why they say what they say? All these contribute to the Attraction and Retention strategy and provide levers of influence. • What else can we do? Do you want fries with that? More specifically, how do we tailor services to meet the needs of the client. And in a consumer driven environment how can everyone have (for example) – the 7 am visit – and how does this effect your workforce and pricing?

Responding to the consumers’ needs and demands • And within these systems (financial and data) how are we positioned to be agile and flexible in responding to financial implications of significant change… • Role of the Ozcare Contact Centre – is this where we need to be targeted our efforts in regard “Responding to Consumer Needs”? Meeting client needs and addressing concerns at first contact…. significant current work… • How do our systems (People. Point / Procura) support this?

Meeting the new market driven competitive challenge The People. Point Community Care Project was initiated to; • Improve current Ozcare practices in community care service delivery • Improve management of client information • Respond to government Consumer Directed Care reforms • We needed to have capacity to generate 1800 new individual profit and loss statements for CDC clients monthly. • Implementation meant Ozcare could meet CDC requirements but we knew that changes were not stopping at CDC.

Responding to the consumers’ needs and demands The use of People. Point in responding to the consumers needs and demands is central to all our work… • Enabled Ozcare to create a single electronic client record accessed from within or away from the offices. • Single client record results in better visibility for staff of client files, and improved data quality and integrity • We needed to get the basics right – then we can start to respond in a competitive way from a client services perspective.

Responding to the consumers’ needs and demands • In summery, our approach with PP has begun to allow us to consider a range of options in regard how we respond to Consumer Needs. – We want to ensure a seamless transition between Ozcare’s Services – Ensures comprehensive clinical, operational, and financial client data is kept in one central location, meaning decisions can be based on the most current and complete information – Enables accurate information to be accessed from any location, resulting in better quality care for clients

Achieving effective cost structures and service pricing • Through the implementation of the new system we have better defined one set of processes for service delivery • These processes have provided multiple efficiencies in work flow • Reduction in manual processing, storage and archiving of hard copy files • Transition to electronic forms means increased client information can be accessed from any location, resulting in better quality care for clients. • Improved scheduling capabilities resulting in efficiencies and cost savings – this is still a work in process – especially in regard to BRO

Achieving effective cost structures and service pricing The new system is allowing greater understanding… – Measure productive V non-productive hours – Better understanding of unit cost… branch administration and overheads – Understand true cost of delivering services – If we capture it we can understand it and adjust process and practice – Leads to more productive use of assets (offices, vehicles, mobile technology etc. ) – Data • A balance between best route and costs associated with travel and time is an on-going tension and will be for the foreseeable future.

Rebranding and repositioning your organisation Branding and Awareness - Rebranding and repositioning the organisation • 2013 saw the launch of our brand refresh Why? • Branding was starting to look dated - Inconsistent use of brand • There was confusion with elements of our logo… • This coincided with streamlining services - community nursing/community care… • We need to be clearly visible – customers need to be able to clearly identify who we are; – Consumers will be asking, who do I want to spend my dollars with? – Tailoring to individual needs and services – One stop shop advantage? (general care, nursing, allied health, residential aged care and ILUs) – Trip Advisor for aged care – virtual market place…

Rebranding and repositioning your organisation Brand refresh outcomes: • Refreshed brand is simple, timeless and meaningful • Coincided with launch of 1800 Ozcare (1800 692 273) and refreshed website ozcare. org. au • Conveys the warm, positive, and personalised service for our clients • Positions Ozcare as a provider of choice – messages… – Leading not-for-profit organisation of professional and caring individuals – Diverse service offering – Highly flexible service offering which can be tailored to suit individual needs – Committed to delivering the highest standard of care to our clients

Future Strategies and Considerations We can’t afford to think of aged care reform in isolation to the rest of the business; NDIS • NDIS stats – Roll out 2016 - 2019 – Injection of approximately $4 billion per year in commonwealth and state funding (Qld) – QLD is expected to double the number of disability clients to nearly 100, 000 – It is expected the disability workforce will require an additional 13, 000 new fulltime jobs – Half of our under 65 funding will transfer to the NDIA – Pricing structure provided by the NDIA looks challenging

A Bright Future New Consumer Led Services – And finally, Clients tell us what they want is for us to listen to them and respond; it’s not always about price… – Ozcare is very well positioned to take advantage of the opportunity’s of a dynamic and growing aged and disability market place – The previous slides highlight the need for us to understand our cost structures - drive down costs and increase productivity – We understand the changes that will be constant over the coming years – Our current planning will assist us to meet these challenges and grow the overall client base in the coming years – The future begins with understanding our customers and business