The Productivity Commission forecasts that the number of
people accessing aged care services in Australia will jump from 1 million to
3.5 million by 2040.
But the numbers are not telling the full story. The profile
of aged care consumers has to be taken into account too. In 2040 the bulk of baby boomers will pass
age 85 years, and will have different expectations from service providers. They will have lived an affluent life and
will bring their highly consumerist values and demands into the aged care
space. Providers will have to rise to new levels of choice, convenience and
service excellence or they will lose out to competitors.
When consumer directed care was first established in the UK
and New Zealand, there was a significant shift of services from the NFP sector
to commercial providers and new entrants, as NFPs were not able to adapt and
change their operating models to be consumer-focused enough to retain clients.
Providers must understand that even now, but definitely by
2040, the consumer is king, unencumbered by brand with greater choice. New
loyalties will be developed based on needs, convenience and price and the
system will support people to stay at home, and part of their communities, for
as long as possible.
It will be critical for providers to build their brands and
enhance loyalty by understanding the people they serve, meeting all their needs
and maintaining excellent client relationships. Aged care providers must become acutely customer focused or
go out of business.
Providers will also need to be open to using new
technologies available in the future to serve their clients’ needs better. Genius new technologies like robotics and
sensors will help providers monitor their clients’ well being in their own
homes. Nestle is developing a device
that designs meals around individuals' nutrient needs which would make it easy
for older Australians to make healthful food without doing groceries. Self-driving cars that pick up clients and
take them shopping, to medical appointments and to visit friends and family at
low cost could reduce the social isolation experienced by older people now.
In order to lead the revolution in aged care, providers must
innovate and change their operating models, build agility and adaptability into
their systems and understand that free-market forces will reshape the way that
aged care is provided by creating competition, fostering innovation and driving
down cost.
Attend the 3rd Australian Future of Aged Care Summit from the 27 - 29 of November 2018. More information here.
Still interested? Stay tuned for information on upcoming conferences and summits by following us on Facebook @ Akolade Aust
Written by: Káti Jahromi Gapaillard, Executive Director, Social Impact, Government, Healthcare, Education
Káti Jahromi Gapaillard has worked for major multinationals such as American Express, Vivendi, Philips, Xerox, Kimberley Clark in Marketing and Communications, in Government for the Department of Education, DFAT and Austrade, and non-governmental organisations such as The National Heart Foundation, Life Without Barriers, Your Side in Growth, Strategy and Engagement and Tour de Cure as CEO.
She is passionate about social impact which can be brought about through the intersection of all three sectors.