General Managers Report

The separation of Prom Country Aged Care’s administration functions from the South Gippsland Hospital has been both challenging and rewarding.

Operating independently of the hospital has enabled us to identify a number of areas where costs can be lowered and greater efficiencies gained. It has also enabled us to establish systems and processes that are tailored specially for our needs, and I am looking forward to consolidating these benefits in the coming year.

Despite our changed administration arrangements, the close relationship between the hospital and PCAC endures. PCAC still purchases meals from the hospital for Banksia Lodge because their quality and value is outstanding.

We also share maintenance services with the hospital, and liaise closely during our planning processes to ensure that our service delivery is aligned.

During the year we addressed a number of very testing issues.

Maintaining accreditation is increasingly difficult as the accreditation bar gets higher. It puts a formidable strain on our limited resources and requires the total focus and dedication of our team. So, I congratulate all of our staff most sincerely for their Herculean efforts in once again securing accreditation for Banksia Lodge.

Upgrading our facilities to comply with certification requirements, especially when no additional funds are available, presents a significant financial challenge for smaller organisations such as ours, but I am pleased to say that both Banksia Lodge and Prom View Lodge currently meet or exceed the required standards.

We are continually updating both properties, and over the past year have invested more than $10,000 for minor upgrades to Banksia Lodge, and $260,388 for major upgrades to Prom View Lodge, primarily for improving the bathrooms and painting.

This investment was made possible, in large part, by the generous donation by the James Trust and local donations. Maintenance works and minor upgrades are completed using the interest we have earned on residents’ bonds. During the year we received $790,000 in bond payments, and refunded $568,600. The value of bonds held at 30 June 2008 amounted to $2,006,464.

While these funds provide PCAC with an invaluable safety net, the reality is that depending on our reserves and interest earned is not a sustainable business model. We need to establish a viable business in its own right, so it is essential that we seek alternative income streams and find ways to operate more cost-effectively if we are to remain viable in the long-term.

This is a major part of our Board’s long-term plan that we will start to implement in the coming year.

PCAC is extremely fortunate to have a full complement of dedicated registered nursing and personal care staff; however, as many of them are approaching retirement, the challenge of attracting and retaining a skilled, qualified workforce in future – in the face of a national skills shortage and a declining rural population – is acute.

In the coming year we will implement the strategies identified in the Board’s 2008-2013 Strategic Plan, to ensure that we are well placed to become an ‘employer of choice’ in this sector, and a magnet for high quality staff.

These days, operating a residential aged care service with fewer than 120 beds and the lack of shared administration is a recipe for failure. So, another of our challenges is to achieve sufficient economies of scale to ensure our long-term financial viability, while operating from two, small, geographically separate sites.

This has become particularly critical in recent months as government reforms to aged care funding have seen a shift towards reduced funding for residents with low care needs, while at the same time many of our low care residents are starting to require higher levels of care, including the attendance of registered nurses.

To ensure we deliver the optimum level of care for all residents, and receive appropriate government funding, we will focus on refining our staff-to-resident mix in the coming year.

This means ensuring that registered nursing staff are available to attend to the higher care needs of residents who are generally categorised as low care and at the same time capitalising on the government funds available.

Finally, maintaining high levels of occupancy in both facilities is essential for our survival. In fact, if we operate at anything less than 100% occupancy, we are losing money. This has a direct impact on the operating budget.

I am pleased to report that over the past year we welcomed 10 new residents to Banksia Lodge and 22 new residents to Prom View Lodge, bringing our average occupancy to 98%. This is up from 93% in the previous financial year.

The support of family members is integral to the wellbeing of our residents, and we acknowledge the immeasurable value they bring through their visits and involvement in various programs.

The broader community, too, is an integral part of who we are. PCAC is owned by the community, for the community, and our Board of Management is nominated from the PCAC membership base. We encourage everyone who is part of our local community to become a member of PCAC, for it is community membership that ultimately directs our future.

There are a large number of people who are committed to working to raise funds for the ‘extras’ to enhance resident comfort, namely the Prom View Lodge and Banksia Lodge Auxiliaries and the Toora Masonic Lodge. The dedication of the members of these groups is to be commended.
Behind the scenes the payroll and finance officer and the accountant support the various financial and payroll processes needed to implement the policies and strategies of the Board. We appreciate their commitment to PCAC and thank them for their patience and flexibility in dealing with the many requests made of them.

The 95 staff working across both homes in various roles all contribute to the care and well being of our residents. One often observes the ‘extra mile’ staff go to in making the residents feel special. PCAC is fortunate to have such dedicated staff and the Board supports initiatives to ensure all staff have the opportunity to develop skills and maintain professional development. Training opportunities are regularly sourced to offer staff training to enable multi-skilling and meet the changing needs in the aged care sector.

All the staff live locally and are involved in a wide range of community activity. PCAC is one of the largest employers in the area and is mindful of the need to offer flexible employment whilst maintaining robust rosters with a pool of skilled staff.

The Director of Nursing Roz Tuffin and Lyn Williams the Supervisor at Banksia Lodge oversee clinical management and staffing, ensuring resident care requirements are met, facilities have a high standard of cleanliness and manage equipment and consumables. They are also responsible for resident assessment and funding claims from the Department of Health and Ageing. They have a large and important role in the operations of the homes and are to be commended on the care outcomes of the residents and the ambiance of homes.

The Board of Management are 10 community members committed to making a difference for our aged community who need to live in residential care. The time and effort, not to mention the skills and expertise they bring to the Board operations has ensured that our residents continue to receive the quality care they deserve.

The Board has endeavoured to set a clear direction in developing a Strategic Plan, highlighting the key areas to be focused on over the next 5 years to ensure PCAC is a viable organisation providing quality aged care services.

I look forward to being able to contribute to the implementation of that plan and being able to celebrate the success of the strategies with you all next year.

Joanne Stringer
General Manager