Small aged care providers often face a daunting challenge. Navigating the turbulent waters of the Australian aged care sector with financial strains and increasing competition from larger entities, the viability of these smaller operations comes under scrutiny. Yet, there’s a silver lining. By embracing unique approaches and innovating their service delivery, small providers may find new pathways to sustainability, reshaping their futures in the process.
The Financial Strain and a Path Forward
The aged care sector in Australia sees small providers grappling with stringent regulatory demands and rising operational costs. These pressures disproportionately affect smaller entities, contributing to about 60% of aged care providers operating at a loss. The stark financial realities have prompted a trend towards consolidation, with many smaller providers merging, selling or even closing to survive, driven by the pursuit of economies of scale which can offer some relief.
However, consolidation isn’t the only path to sustainability. There is significant value in small providers leveraging their agility to innovate and adapt quickly to changing circumstances. By focusing on niche markets, personalised care, external capital investment (whether Govt or non-Govt) and community integration, these providers can carve out sustainable models that may not traditionally scale but are profoundly impactful for the communities they serve.
The Crucial Role of Talent Recruitment
Innovation in aged care requires visionary leadership. The recruitment of talented individuals who can drive transformative changes is critical. Talent recruitment strategies need to highlight the potential impact that leaders can have in smaller settings, where their decisions can directly influence care quality and operational efficiency. We’ve recruited two non-aged care experienced leaders in the past six months to key positions in the sector. Both will be driving operational success with their respective providers, not just to stay afloat, but to perform well, innovate and provide appropriate care to the communities they serve.
We were recently engaged to recruit a CEO for a small aged care provider just outside of the Sydney Metro. This organisation has ambitious goals to significantly increase turnover through innovative strategies, such as sourcing alternative funding streams, diversifying and enhancing service models and alternative operating models to what they’ve ever done before. This approach underscores the importance of talent recruitment in not only filling a role but also empowering small providers to think beyond traditional boundaries.
Housing Crisis and Its Impact on Recruitment
A significant hurdle in recruiting for aged care leadership roles in rural and regional areas is the housing shortage. Often, we find ideal candidates, but the speed hump in the road is often our clients frantically trying to find appropriate short-and even longer term rentals for our candidates. This issue not only affects individual providers but also threatens broader economic growth in these regions. Quality housing solutions, both for rent and purchase, are essential to addressing rural disadvantages and ensuring that incoming leaders can settle and thrive. Without addressing this housing crisis, the goal of revitalising rural aged care through dynamic leadership remains out of reach. There are many more providers now, than even five years ago, who are either purchasing or taking long term leases on housing in their towns. This is enabling all levels of workforce to live and work in these rural communities that have, for so long, struggled with talent recruitment.
Embracing Alternative Funding Opportunities
Exploring alternative funding avenues such as crowdfunding, private donations, strategic public/private partnerships and private equity investment can significantly bolster the financial resilience of small aged care providers. Crowdfunding campaigns can engage the community and raise awareness, turning public support into a stable financial base. Private donations from philanthropists who value community-driven care can provide substantial backing, while private equity could inject necessary capital for expansion and innovation. Each of these funding sources not only offers financial aid but also helps to validate and support the provider’s mission in the broader community. One of our most favoured clients was founded by a tri-partisan coming together of a church, a not-for-profit organisation and a community group. It’s still going today, 60 years on.
Talent Recruitment: Emphasising Innovation and Adaptability
Recruiting for small aged care providers must focus on finding individuals who are not just capable managers but also innovators and problem-solvers. These leaders should be adept at implementing creative solutions that enhance financial sustainability and care delivery, making them invaluable as these organisations strive to redefine their operational models.
We often find that executives we place in these rural and regional centres, who work with the smaller community-based aged care providers walk into a shemozzle. Their leadership skills are put to the test, and we see a resourcefulness come to the fore that they never knew existed until now. A lot of it is because there aren’t the business vertical support units, no HR, no marketing, no IT department, no meat on the bone per se, to provide that extra support when they need it.
The Unique Value of Small Providers
Small, community-owned aged care providers hold an essential place in the landscape of aged care. Their ability to offer personalised, boutique aged care tailored to specific community needs often sets them apart from larger competitors. These providers enhance community well-being and foster ongoing community connectedness by allowing elderly residents to remain within their local environments, supported by care that respects their histories and identities.
Conclusion
The narrative of small aged care providers in Australia is evolving from one of survival to one of unique opportunity. By innovating and adapting, these “Davids” can indeed find their place alongside the “Goliaths” of the industry. With strategic talent recruitment, a commitment to innovative practices, and addressing critical issues like housing shortages, small aged care providers can navigate their challenges and emerge as vital contributors to the sector, offering models of care that are sustainable, effective, and deeply valued by the communities they serve.