thinking ahead on: home care - pricing, strategy ... · financial reporting to govt. other...
TRANSCRIPT
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Thinking ahead on:
Home Care - Pricing, strategy, disruption and governance
Heath Shonhan e: [email protected] p: +61 (0)7 3222 9777
February 2017
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DISRUPTION!
The power of the crowd
Labour/consumer flexibility
Existing sub contracting
arrangements
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Identifying your value proposition
Source: Strategyzer.com
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New skills for success
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Total Home Care
Centrally held or
unallocated
items
Service level
Name <A>
Service level
Service level
Name <B>
Service level
Income
Provision of Care/Services Fees Charged to Package and Private
Clients
0
Client/Case Management Fees Charged to Package and Private
Clients
0
Administration Fees Charged to Package and Private Clients 0
Unspent Home Care Amount 0
Other Revenue 0
Total Income 0 0 0Check Total - Sum of Service Level Totals equals Total Home Care 0
Expenses
Wages and Salaries - Care Staff 0
Wages and Salaries - Administration Staff 0
Administration Costs and Management Fees 0
Care related expenses 0
Sub-contracted or brokered client services 0
Depreciation expenses 0
Interest expenses 0
Other expenses 0
Total Expenses 0 0 0 0Check Total - Sum of Service Level Totals equals Total Home Care 0
Net Profit/(Loss) Before Tax 0 0 0 0Check Total - Sum of Service Level Totals equals Total Home Care 0
Financial reporting to Govt.
Other Financial Information (Commonwealth Package Clients only)
From Consolidated Client Statement
Unspent Home Care Amount - Opening Balance
Commonwealth Subsidies and Supplements
Client Fees - Basic Daily Fee
Client Fees - Income Tested Care Fees
Client Fees - Other
Funds Transferred in With New Clients
Funds Transferred Out With Existing Clients
Package Funds Spent
Unspent Home Care Amount - Closing Balance
From Home Care Segment Balance Sheet
Cash and Liquid Assets (current)
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Pricing Checklist
Target pricing now becoming common in aged care!
Area Yes / No Changes required
1 Price on competition/what we think, or value provided / services
required;2 Restaurant menu of services, each underpinned by costed Bill of
Materials (BoM);3 Exit fees from (27 Feb 2017) + value proposition (or Care transition
plan?;4 Unit of measurement (1hr, event, 15 minutes or 6 minutes?) with
minimum service period;5 Payment process (direct debit, credit card) for out self funded –
minimise the payment pain point;6
10% administration expense (via a) leverage or b)efficiency); and
7Loading for shorter periods? Eg hourly rate = $100, ½ hr= $65
8 Activity based costing for every product / service (and over time
customer profitability analysis) - time and products
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GST and out of pocket outlays (eg ticket
costs) extra
Care Massage $45 / half hour Enriching Christenings, weddings, births, deaths $75 / hr $500 /
(Non Osteopathy $45 / half hour Rainforest retreat $75 / hr $500 /
Assessed Bedding upgrades POA Holy place visit $75 / hr $500 /
need) Aromatherapy $75 / session Sky diving $75 / hr $500 /
Hydrotherapy $65 / session Cruise $75 / hr $500 /
Counselling and support $85 / hour Seaside holiday $75 / hr $500 /
One on one personal assistant $45 / hour
Non prescription drugs, vitamins etc $20 / order Entertainment Cinema $75 / hr $500 /
Case management $125 / hour Concert, music festival (eg Bluesfest) $75 / hr $500 /
Exit fees $0 Theatre $75 / hr $500 /
Care transition planning (on program $500 Casino $75 / hr $500 /
Care program development $1650 / program Sporting event attendance $75 / hr $500 /
Reablement program management $145 / session Other $75 / hr $500 /
Personal Repairs and maintenance of personal items $350 / day
Shopping $75 / hr $500 /
Room service $5 per meal Funeral services $3,500
Services Non emergency patient transport $4.50 / km Trustee services $250 / hr
In home care mhealth technology bundle $25 / month Real estate agency 2% commission
mhealth monitoring $10 / day Reverse mortgage brokering NIL
Telecoms and data $5 / day Informal carer support services $25 /hour
iPad rental $20 / day Custom activities planning $50 / event
Technology support services $100 / 2 hr bundle Function catering $35 / hr wait staff
Home care service menu (EXAMPLE ONLY!)
Your menu of services
Consider the power of a telco ‘bundle’!
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Updating your ‘Governance’ Principle Thinking ahead
1 Roles/ responsibilities
Pricing strategies (exit fees, other service menu items) require consideration within next 45 days. Client service staff performance rewards based on client satisfaction, profitability ($) , longevity, innovation.
2 Board Composition Include customer attraction and technology deployment skill sets to the Board requirements. Consider age of board members and their relative connectivity in your serviceable market.
3 Purpose and strategy Your target market / customer (fee for service irrespective of funding source) may require a rethink of your vision and mission.
4 Risk recognition and management
Review enterprise risks associated with increased clinical governance requirements (if providing higher levels of care), subcontracting arrangements, and debtors.
5 Organisational performance
Timesheets to track whether available resources (time/human capital) are being utilised in an efficient/effective manner to achieve stated outcomes. Are we getting maximum desired impact from/avoiding wastage of resources?
6 Board effectiveness Update standing agenda items for board members – include Innovation, consider clinical governance and consumer engagement sub committees s
7 Integrity and accountability
Update board reporting dashboards / measures that matter, consider how often these are reported against - weekly, monthly, quarterly (Home care is /can be 24/7)s
8 Organisational Building
Flexibility for staffing (when/where they work) supported by Technology (from rostering and time sheets through to product ordering, care service completion, Home care ). New staff skills s
9 Culture and Ethics Customer first. Capture knowledge and the ‘way things are done’ in knowledge management systems / Human resource management systems. High ethical standards just expected.
10 Engagement Reconsider who (client OR their family) what you sell (care vs guilt reduction) , and how you engage with them (google AdWords, word of mouth), and similar engagement strategies for other key stakeholders.
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DON’T MISS THE UPCOMING RISK MANAGEMENT SEMINAR
Legal and financial issues in home care and residential care
Collect a flyer on your way out
for more details
When and where?
Date: Wednesday, 8 March 2017 8:15 am for 8:30am, concluding at 1pm – with a light lunch. Location: Victoria Park Golf Complex, 309 Herston Road, Brisbane Registration: $120 pp (incl. GST) ACSA Member Special: $100 pp (incl. GST) Multiple registration special: Book 2 delegates and the 3rd registers FREE
Presented by:
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Measures that matter(Balanced Scorecard)
Four interlinked quadrants
enables focus on driving long
term financially viable delivery on
mission by:
creating value for current and
future clients;
build/enhancement of internal
capabilities;
making investments in people,
systems and procedures
necessary to improve
performance.
Financial
Customers
Learning & Growth
Internal Business
Processes
Vision & Strategy
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13
Client /resident/family satisfaction index eg NPS (measured per event , tracked
# of family / resident contact episodes - face to face + online
% Enquiry conversion to service delivery per week (pipeline management)
Resource investment (time + financial) into R&D
New products / services commercialised / implemented
per quarter
Resource investment (time + financial) into soft skills Training per month
# of community interactions per month (events, ‘likes’, social media
engagement etc)
% compliance with regulatory expectations-
accreditation, WH&S, clinical governance per quarter
Employee engagement per month/
quarter
Staff turnover; average length of service per employee;
absenteeism
Staff utilisation / productivity
(billable/unable)
Average spend per customer per day
% coverage of funds held in trust
(>100%)
Resident wellness + Quality of care indicators
Gross Profit % per month
Input / administration costs as a % of revenue
Measures that matter(Balanced Scorecard)
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Innovation!