industry & reform
necessarily required as these services are
provided to residents as part of bundled
services which may enable operators to
achieve potentially a higher per-square-
metre sale price for apartments.
CONSUMER TRUST
The concept of assisted living is not new.
In my view, it seems that retirement village
operators with an assisted living offering
have not:
• A
sked the right questions at point of
sale to potential residents about care and
support needs, but rather focus on the
transaction as being all about real estate.
The care component, which could be the
most important decision-making factor
for some residents, is often missing in the
conversation, or
• E
ffectively communicated with potential
residents and families the additional
benefits from a coherent suite of assisted
living options.
We find that consumer trust is established
from the very first interaction by providing
detailed, clear and transparent information.
We know one provider that endeavours to
understand consumers’ needs, wants and
requirements and suggests services
accordingly which is crucial to making the
assisted living model successful.
It is important to cater to the changing
care needs of consumers by undertaking
regular health assessments of residents and
monitoring care plans.
Operators offering the three levels of
accommodation and care – independent,
living assisted, and living residential – on
one campus are well placed if a resident’s
care needs become high and provide a value
proposition for conversations with potential
residents and families.
• P
ay as you go?
• O
ffset funding from government home
care packages against the private
packages?
• E
xplicit, transparent and fair – not
shrouded by accommodation costs
(such as accelerated, punitive deferred
management fees)?
DESIGNING AN OFFERING
For operators planning fee-for-service
assisted living private packages, some
design elements for consideration include:
CUSTOMER SALES CONVERSATIONS
PRICING • A
sk the right questions at the first
customer interaction to gain critical
insights and not just address the real estate
transaction.
• C
lear, transparent and detailed information
including resident contracts to be shared
up-front.
• I s there seamless, priority entry if there is
co-located residential aged care?
StewartBrown’s recent financial survey
revealed average residential aged care and
daily living funding of $84,000 per annum,
indicating the average resident is high-care
status. The days of the hostel solution for
low-level care are thus long gone.
Combined with long waiting lists and
income-tested fees for government-funded
home care packages, there is an opportunity
for clever operators of seniors’ communities
to fill the service gap with carefully
structured, value for money fee-for-service
assisted living packages. ■
• M
andatory base package pricing?
• W
hat is the pricing structure that would be
competitive in the market? Safdar Ali is the director and founder of
The Ageing Equation.
Location and target audience
• I n-depth primary and secondary market
and customer research are crucial to gain
a deep understanding of the markets,
residents’ behaviours, motivations,
attitudes, needs and wants. This will assist
in developing an offering which responds
to residents’ needs and expectations.
The offering: What services are
delivered and in what environment?
• S
hould they be tiered private packages
covering the assistance and lower care
spectrum or limited by hours?
• E
xplicit service lists with options?
• T
echnology – what to employ –
movement sensors, virtual reality?
• A
partment mix, sizing, concentrated or
spread across independent living?
TABLE 1: HOME CARE PACKAGE VERSUS A SELECTED FEE-FOR-SERVICE PACKAGE
Package level
Level 1
Level 2
Level 3
Level 4
All
Fees (per annum)/features
Fee range depending on income level
Minimum resident contribution
Maximum resident contribution
Fee range depending on income level
Minimum resident contribution
Maximum resident contribution
Fee range depending on income level
Minimum resident contribution
Maximum resident contribution
Fee range depending on income level
Minimum resident contribution
Maximum resident contribution
Features
Wait time for approved package
Level 1
Level 2–4
24/7 onsite care in case of emergency
Care time lost in travelling
Government home care
Package 1 Selected fee-for-service
Package 2
$3,807
$14,700 -
$11,440
$3,807
$14,700 -
$16,440
$3,807
$14,700 -
$24,440
$3,807
$14,700 -
$29,640
3–6 months
12 months+
No
Yes Delivered immediately
Delivered immediately
Yes
No
Source: The Ageing Equation, My Aged Care and Department of Health.
Notes: 1. The government-funded home care packages come with a lifetime cap on fees of $65,357.65.
2. The selected fee for service package is one currently available in the marketplace at seniors’ living communities.
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