Optimising Aged Care Operations: Achieving Quality Care at a Lower Cost
With the baby boomer generation entering their twilight years, the demand for aged care services has surged significantly. As of 30 June 2020, there were an estimated 4.2 million Australians aged 65 and over compared to just 2.1 million in 1995. Around 80% of this group accessing aged care support are doing so from home, driving the demand for quality in-home care services.
In the wake of The Aged Care Commission, the Australian Government, responsible for a large portion of the sector’s funding and regulation, is facing mounting public pressure to reform the aged care system. In response, they’ve revised funding requirements, ultimately driving a trickle-down effect with in-home care service providers to elevate care standards while simultaneously slashing operational costs. However, reducing the cost of service and delivering high-quality care is no easy task. Home care package providers are understandably cautious about the trade-offs, especially when it comes to compromising service quality in the name of cutting costs.
As the population ages, the industry will continue to grapple with tight budgets, staff shortages, and stringent compliance requirements. These challenges demand solutions that go beyond mere budget cuts.
By utilising Biarri technology, providers can harness the power of mathematical optimisation to reduce their cost to serve without sacrificing the quality of care. Our Rostering and Scheduling Optimisation software ensures reliable service delivery, enhances client and staff satisfaction, and maintains compliance with regulations such as those set by Fair Work Australia while avoiding the common pitfalls of poor rostering and the penalties associated with non-compliance.
Navigating the Cost Crunch: Challenges Facing Aged Care Providers
The aged care sector in Australia is navigating a complex landscape where government-driven cost pressures and increasing competition have created significant challenges for providers. Since the federal government took over aged care in the 1980s, the focus has been on reducing costs through service privatisation, activity-based funding, and increased competition. While these measures were introduced under the guise of consumer choice, they have led to a fragmented and often poorly coordinated sector, with nearly 3,200 providers, many of them small and under-resourced, relying on centralised funding and regulation from Canberra.
For these providers, reducing the cost to serve is not just important; it’s essential for survival. Private providers must maintain profitability in a fiercely competitive market, while not-for-profits face the challenge of offering more services and achieving financial stability amidst new funding models.
The Real Cost Drivers
Staffing Costs: Representing around 56% of operating expenses, staff salaries are the most significant cost for in-home care providers. The Fair Work Commission’s decision to increase wages for aged care workers by 15% from July 2023 has compounded financial pressures, making it even more critical to manage these costs effectively.
Regulatory Compliance: With the new Aged Care Act and strengthened Aged Care Quality Standards coming into effect in July 2024, providers are under pressure to invest more in compliance and risk management, further straining their budgets.
Service Delivery: The global shift towards more patient-centric care models means providers must offer increasingly personalised and frequent services.
Technological Investments: In response to these challenges, many providers are turning to technology to streamline operations and reduce costs. However, the key to long-term success lies in selecting the right technology that delivers measurable savings over time.
Enhancing Operational Efficiency in Aged Care with Biarri Workforce Planning
As the aged care sector faces increasing demands for high-quality, personalised care amidst escalating costs, Biarri Workforce Planning Software provides a robust solution that leverages advanced mathematical optimisation. By adopting Biarri’s technology, aged care providers are achieving substantial operational efficiency and cost management gains. Here’s how Biarri’s solution delivers tangible results via in-home care embedded optimisation:
1. Optimised Workforce Rostering, Scheduling and Allocation
The Biarri Workforce Planning Software has been proven to optimise workforce planning effectively. When implemented by Australian Unity, Biarri’s solution achieved a 15% reduction in the cost to service each home visit. By ensuring that staff are deployed efficiently, providers can reduce the need for overtime and limit reliance on expensive agency staff. These changes cut operational expenses and improve overall care delivery efficiency.
2. Improved Consistency
Visit consistency is critical in aged care. Clients want reliable and flexible care, and care workers want consistent shifts. With Biarri’s system, providers like Australian Unity have seen the number of visits delivered as planned increase from 60% to 90%. This improvement has seen clients receive the care they need when they need it.
3. Reduced Travel Time and Costs
Travel time between client visits is a significant cost in-home care service delivery. Biarri’s optimisation algorithms have helped Australian Unity reduce average travel minutes per visit by 15%. This reduction allows caregivers to spend more time providing care rather than commuting. This enhancement improves the quality of care and cuts down on fuel expenses and vehicle wear and tear, contributing to overall cost reductions.
4. Facilitating and Simplifying Compliance
The Biarri Workforce Planning Software ensures that all rostering and scheduling decisions comply with relevant labour laws and industry standards. By sufficiently modelling employee agreements, Biarri Workforce Planning Software reduces the risk of costly penalties and legal challenges, protecting organisations from potential financial pitfalls while maintaining high service standards.
5. Reduced Rostering & Scheduling Effort
Another significant benefit of Biarri Workforce Planning Software is the reduction in the time and effort required to manage rostering and scheduling. Biarri’s advanced algorithms remove much of the manual, time-consuming work traditionally involved in these tasks. By automating these process, providers can quickly generate optimised rosters that align with client needs, staff availability, and regulatory requirements. This efficiency reduces administrative overhead, frees up valuable management time, and ensures that resources are allocated where they are needed most. The result is not only a decrease in operational effort but also greater accuracy and consistency in workforce planning, leading to better outcomes for both clients and staff.
6. Scalability and Flexibility
We have designed our solution to scale with the needs of aged care providers, making it suitable for both small and large organisations. The Biarri Workbench ensures consistent cost savings and operational efficiency across various operational scales, helping providers efficiently manage growing client bases and fluctuating demand.
Elevate Your Aged Care Efficiency Today
The Biarri Workforce Planning Software has proven to be a powerful tool in reducing the cost to serve while enhancing the quality of care provided. With optimised scheduling, reduced travel times, and robust compliance management, Biarri’s solution ensures that aged care providers stay competitive and sustainable in a challenging market.
Ready to transform your operations? Schedule a meeting with us today to discover how Biarri’s Workforce Planning Optimisation can drive efficiency, cut costs, and elevate the care experience for your clients. Let’s work together to achieve tangible results.
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