The must have guide for aged care directors

With profitability, return on assets and equity under pressure in what is soon to be the largest employer in the country, the Governance Institute’s Adding value to governance in aged care is a ‘must have’ for the sector’s directors and senior management.

Aged care is a major part of the Australian economy.  About 2000 providers employ some 350,000 staff.

Increasing Choice in Home Care reforms changed the regulatory framework as of 27 February, and the new guide addresses a broad range of issues, including the sector’s unique challenges.

Among topics are factors to consider before taking a board position, what a board should consider before appointing a new member, the relationship between board and management, interaction with stakeholders, volunteer management, and risk-management responsibilities.

Adding value to governance in aged care is the definitive guide for directors committed to dealing with the high regulatory burden, increasing consumer choice and changes to funding.

‘Boards of aged care providers will be subject to increasing scrutiny and pressures as the forces of demographics press up against the issues of affordability and sustainability in the sector.  Boards will need to ensure that they are capable of making informed and effective decisions and have in place governance frameworks to enable this,’ said the institute’s Steve Burrell.

‘A lot of boards, particularly not-for-profits, may not be prepared for the regulatory change sweeping the sector and the demands this brings.  Boards need to have a designated skillset to overcome the multiple challenges their organisations are facing.’

Adding value to governance in aged care is a practical guide for anyone involved in aged care because large-scale organisational change will be required in terms of workplace arrangements, staff roles, IT, business processes and capital expenditure to deliver the best consumer-driven care.

‘Importantly, the guide does not tell boards how to run their organisations.  But it does step directors through the issues that they should consider in terms of their governance responsibilities,’ said Mr Burrell.
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