The Progression of Additional Services

It is no secret that the shift to CDC and continued financial pressures require providers to innovate and adapt their business models. As a response to these challenges, we delivered our “2017 Additional Services Industry Insights Report”, highlighting both the opportunities and the issues.

In the two years since, our research team has continued to map the legislative requirements and industry response to additional services. Having collated our findings, across 100 facilities, we take great pleasure in delivering our 2019 Additional Services Industry Insights Report.

This insight presents our key findings, the full report can be downloaded here.

JAMES SAUNDERS
Partner – Finance & Operations


Additional Services Survey Findings

1. How prevalent are additional services?

Our research shows indicate that 84% of Providers actively offer and market ad-hoc additional services on a fee-for-service basis, whereas only 30% of Providers offer additional services on a bundled package basis.

 

2. How are additional services being charged?

Fees for bundled services range from $5.00 to $65.00 per day. The average daily service fee is $25.65 (median $23.00).  Fees at the lower end of the spectrum are targeted towards supported residents.

3. Is non-compliance an issue?

We found a concerning number of Providers charging for services required under the Act.

These services include but are not limited to:

Click below to download the Pride Living 2019 Additional Services Insight Report


The Future for Additional Services

The additional service space has grown and matured significantly in the past years. This has simultaneously led to a greater spotlight on some Providers who have misled consumers and a greater awareness of the options available to consumers.

While consumers are prepared to pay for services, they also demand value. In the short to medium term, our take is that:

  • the greatest risk of non-compliance will be to Providers who take a “set and forget” approach to their additional services offering.
  • the AACQSC will take a greater interest in complaints against Providers over additional services. This could be in the form of further regulation or providing guidelines to Providers and consumers.
  • as with Extra Services, we see Providers being required to publish their services on the myagedcare
  • Additional Services will underpin the financial viability of Providers into the future.

How can we help?

Implement Additional Services with Confidence

We agree that the Federal Budget cuts have had an unfavourable impact on Providers across the board. We’ve witnessed the undue pressures Providers face to adapt to this new environment but struggle due to lack of guidance and support.

As a result, we created the 12-month Pride Additional Services Subscription (PASS) model which provides full-circle support and guidance through development, implementation and the delivery stage of additional services.

If you are considering how to ensure financial sustainability in your new or existing facility, the team at Pride Living can help you implement Additional Services with Confidence!

To find out more on how we can help you, contact James Saunders on 02 9239 9004 or email james.saunders@prideliving.com.au