Presidents Report 2007-2008

The 2007/2008 year will be remembered for Prom Country Aged Care Inc. (PCAC) not only having a new name but becoming an autonomous organization committed to providing aged care that is high quality, affordable, accessible and flexible to meet the needs of our community.

We welcomed the appointment on 1st November 2007 of Ms Joanne Stringer as General Manager of PCAC reporting directly to the PCAC Board of Management. Over past years a joint Chief Executive Officer had been responsible for overseeing the operations of both the South Gippsland Hospital and Prom Country Aged Care but with increasing challenges facing the provision of aged care in our community, the PCAC Board thought it appropriate that it put in place a focused management structure. With Joanne’s experience in managing a wide range of services and with the close co-operation of staff and community groups there has been a smooth transition of separation for the PCAC community. I am happy to report that despite the separation of the two organizations, the longstanding close and happy relationship between our aged care facilities and the hospital has continued.

It is important to reflect during our first year of autonomous operation that PCAC is a community association which is owned by the community and run by a Board of Management elected from the members of the PCAC Association. The assets of PCAC are owned by the community for the benefit of all. One of our most important strategic objectives is to expand our membership of the PCAC Association. Any person in our community may become a member with an annual subscription of $5. Members and other stakeholders are consulted by the Board in setting its strategic direction for the future and we greatly welcome ideas from our members about how we can best meet our community’s needs for aged care. In making submissions to Government for funding and grants it is important to be able to present the positives of a widespread involvement of our community in our aged care facilities.

The Board has focused during the first year of our autonomous operation on ensuring that administrative policies and procedures are in place and documented. Income and cost centres have been established and the Board is able to review operating costs by function.

The other major focus has been on future directions for the provision of aged care in our community. The Board has worked on the development of a Strategic Plan which will focus on five major areas: accommodation standards, financial sustainability, our client base, development and retention of our staff and infrastructure needs.

Funding for aged care is subsidised by the Commonwealth Department of Health and Ageing. PCAC receives a subsidy from the Commonwealth Government for each resident based on the level of care they require and all residents pay a Basic Daily Care fee set by Government at either pensioner or non pensioner rate. Residents who are part pensioners or self funded retirees and have a private income may be asked to pay an additional daily fee which is capped and reviewed regularly. In addition, depending on their assets, low care residents may be asked to pay an Accommodation Bond. This Bond is refundable when the resident leaves the care of PCAC less a capped Government drawdown. PCAC retains any interest earned on the Bond. High care residents in Prom View Lodge, depending on their assets, may be asked to pay a daily Accommodation Charge. For those hostel and nursing home residents who cannot afford to pay an accommodation bond or charge the Government pays an additional subsidy on their behalf to PCAC.

The Board has to reflect if it has the balance right: the balance between Government and private funding; between Government responsibility for older members of our community and the personal and family responsibility for our elder members.

Against this background to say that the 2007/2008 financial year has been challenging would be an understatement. The problem facing your Board is that changes to Government funding formulas and steeply rising operating costs means that smaller aged care facilities, such as ours, find it increasingly difficult to fund day to day operations let alone finance capital works. Change of some sort in the way we operate seems inevitable as we plan to ensure our operations are placed on a sustainable footing with a bright future.

Between 2011 and 2030 the baby boomers will progressively turn 65, so we have decades of growth in front of us. The demand for aged care services is expected to double but the difficulty is predicting which level of care will generate the most demand. Level of care encompasses low level or high level care, and can include specialized care for dementia sufferers and for young people with an acquired brain injury. The Board is undertaking a review of our current operations which will enable planning for the future, but in essence our facilities must be flexible in the approach to accommodation offered.

The facilities of Banksia Lodge and Prom View Lodge are regulated by the Commonwealth Aged Care Act 1997 and Aged Care Principles as well as some Victorian Government legislation, for example, building regulations and the registration of staff. We warmly congratulate our staff, who work within a culture of continuous improvement, on the renewal of our Government accreditation for Banksia Lodge.

Upgrading of the facilities at Prom View Lodge remains a challenge bearing in mind the age of the building and facilities. Internal painting has been completed and part of the bathroom and utility areas upgraded. The improved car parking project is nearing completion. Applications for grants to fund extensions and alterations together with an additional six bed licences foreshadowed in our 2006/2007 Report unfortunately did not come to fruition. Prom View Lodge accreditation is due early in 2009 and our staff are working very hard to achieve a satisfactory result.

The Board is very proud of the commitment and dedication that management and staff have shown. I would also like to thank my Board colleagues for their valuable contribution and expertise. A warm welcome also to our new Board members, Terry Parks, Sandy Bucello and Stuart Tracy. Thank you to the community and the many organizations that have played a wonderful part in supporting PCAC during the year particularly our hardworking Auxiliaries. The support and level of fundraising is amazing.

Robert Knight
President