Governance Institute launches ‘must-have’ guide for aged care directors

With profitability, return on assets and equity under pressure in what is soon to be the largest employer in the country, Governance Institute of Australia’s Adding value to governance in aged care is a ‘must have’ guide for directors and senior management facing the governance challenges of a sector going through unprecedented disruption.

With the Increasing Choice in Home Care reforms changing the regulatory framework from 27 February, the guide addresses a broad range of issues including the unique challenges facing the sector; factors to consider before taking a board position; issues the board should consider when appointing a new member; the relationship between the board and management; interaction with stakeholders; volunteer management; and risk management responsibilities.

Adding value to governance in aged care is the definitive guide for directors committed to overcoming key tests of the sector, including a high regulatory burden, increasing consumer choice and changes to funding. “Boards of aged care providers will be subject to increasing scrutiny and pressures as the forces of demographics press up against the issues of affordability and sustainability in the sector. Boards will need to ensure that they are capable of making informed and effective decisions and have in place governance frameworks to enable this,” said Governance Institute chief executive Mr Steven Burrell.

The aged care sector is a significant part of the Australian economy. The sector employs around 350,000 aged care staff across approximately 2,000 aged care providers and is tipped to soon be the largest employer in Australia.

“Australians are living longer—due largely to improvements in health care—and as the large cohort of baby boomers ages, the number and diversity of older Australians will grow. The sector is going through unprecedented change, aimed not only at improving care for older Australians but also relieving the cost burden for younger Australians,” Mr Burrell added.

“A lot of boards, particularly not-for-profits, may not be prepared for the regulatory change sweeping the sector and the demands this brings. Boards need to have a designated skillset to overcome the multiple challenges their organisations are facing.”

Adding value to governance in aged care is a practical guide for any potential or current member of a board of an aged care provider. Large-scale organisational change will be required in terms of workplace arrangements, staff roles, IT, business processes and capital expenditure in order to deliver consumer-driven care.

“Importantly, the guide does not tell boards how to run their organisation, but it does step directors through the issues that they should consider in terms of their governance responsibilities,” Mr Burrell concluded.

Download Adding value to governance in aged care at governanceinstitute.com.au/agedcare

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Media contact: Hannah Edwards, media@governanceinstitute.com.au

About Governance Institute of Australia 

A national membership association, advocating for a community of 40,000 governance and risk management professionals from the listed, unlisted and not-for-profit sectors.  Our mission is to drive better governance in all organisations, which will in turn create a stronger, better society.

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