Embracing digital transformation in the aged care sector

Ongoing legislative changes in the aged care sector

The introduction of the Care Minutes in Residential Aged Care legislation has been a key driver for workplace optimisation through the establishment of clear metrics for the industry.

This legislation mandates that residential aged care providers deliver a minimum of 215 minutes of direct care per resident per day, including 44 minutes by a registered nurse. This clear benchmark not only aims to ensure that residents receive adequate care but also creates an impetus for providers to effectively plan and allocate their workforce to meet these standards.

Complementing this, the recently passed Aged Care Act 2024 (herein referred to as the Act) adopts a whole person-centred approach to funding, ensuring that clinical care is funded without means testing. The Act provides a structured framework for aged care providers with the aim of adding more transparency and accountability to Australia’s aged care system.

This model emphasises direct care, with global research indicating that 3.6 hours of direct care per day delivers a good standard of care, with 4.3 hours approaching best practice. This focus on direct care ensures that residents receive personalised attention and support, which is crucial for their wellbeing. While this is a general guideline, it's crucial to remember that the specific needs of residents vary greatly. Some residents may require significantly more than 4.3 hours of direct care per day, while others may need less. The mandated minimum is a baseline, and aged care providers should strive to provide care that meets the individual needs of each resident.

Achieving these targets requires careful planning and coordination, particularly in terms of staffing and resource allocation and can cause challenges for organisations that are not adequately prepared. It can also be a challenge for organisations that manage their resourcing allocations manually, as they may find it difficult to measure how their organisation stacks up against the recommended guidelines.

The reforms also include metrics for 24/7 registered nurse coverage, with 92 per cent of homes having achieved this benchmark. However, on average, ten per cent of care minutes for registered nurses are delivered by agency staff, which can be over 50 per cent more expensive than internal resources. This highlights a critical challenge in the sector - the need to balance the availability of skilled staff with the financial constraints faced by aged care providers. Ensuring continuous coverage without over-reliance on costly agency staff is a delicate balancing act that requires strategic workforce planning.

Opportunities with digital solutions

Given the changes to the sector and the implementation of measurable benchmarks and standards, aged care organisations face a number of challenges. However, these challenges raise opportunities that forward-thinking organisations can leverage to improve efficiencies within their business.

Recalibrating rosters for managing care minutes

One key challenge for aged care organisations when managing care minutes is the recalibration of rosters based on occupancy and changes in resident acuity. This can be particularly challenging for traditional residential facilities, which were designed for specific populations and now need to adapt to higher levels of care. The ability to dynamically adjust staffing levels based on the changing needs of residents is crucial for maintaining high standards of care. This requires robust data collection and analysis tools to monitor resident acuity and predict staffing requirements accurately.

Improving resident care

The primary goal of the Act and its associated reforms is to elevate the standard of care provided to residents. Digital transformation can play a crucial role in achieving this by reducing errors and ensuring that individuals receive the appropriate level of care through increased contact and tailored support.

Workforce shortages and high turnover rates

Another pressing challenge in the aged care sector is the shortage of skilled workers and high turnover rates. With around 70 per cent of expenditure in aged care being workforce-related, it is crucial to get staffing right. The introduction of care minutes and the requirement for 24/7 registered nurse coverage have added to the complexity of workforce management.

Digital solutions, such as advanced rostering systems, can help manage these challenges by ensuring optimal staff allocation based on care needs and availability. These systems can also provide real-time data on staffing levels, helping managers make informed decisions and reduce reliance on costly agency staff.

In the face of high turnover rates, workforce optimisation becomes crucial, and efficient recruitment processes are essential to minimise the time to fill positions. Digital tools, such as applicant tracking systems (ATS) and Artificial Intelligence (AI), play a pivotal role in streamlining recruitment. These tools can automate repetitive tasks, filter and rank candidates based on predefined criteria, and provide valuable insights through data analytics. By leveraging these technologies, organisations can enhance their recruitment efficiency, reduce hiring time, and ensure they attract the best talent swiftly and effectively.

Mobile accessibility

Mobile applications are a game-changer for workplace optimisation, especially given the highly distributed nature of the aged care workforce. It's not just about managing rosters and schedules; it's about empowering employees who may not have regular access to computers or laptops. By providing mobile access, employees can easily input their shift availability, view their rosters, complete online education and compliance modules, and stay connected with their team and employer. This level of accessibility supports employee engagement by enabling regular communication and check-ins, fostering a sense of value. Mobile accessibility ensures that employees have the tools they need to perform their roles effectively, enhancing overall workplace efficiency and satisfaction.

Financial sustainability

Financial sustainability is another major challenge, especially given the increasing costs associated with providing care. Even with the person-centred approach to funding, providers are still expected to manage their costs effectively.

Digital solutions can assist in this area by offering tools for financial planning and analysis. For example, automated financial management systems can track expenses, forecast budgets, and identify areas where cost savings can be made. Additionally, digital platforms can streamline administrative tasks, freeing up resources to focus on other areas of priority for the business.

Staying compliant

The aged care sector is heavily regulated and meeting legislated requirements can be a significant burden for providers. Organisations are under pressure to demonstrate compliance with the metrics associated with aged care reforms and navigating the complex regulatory landscape requires dedicated resources and expertise, which can strain already limited budgets.

Digital solutions can help organisations stay compliant by providing tools for monitoring and reporting. For instance, care management systems can track care minutes and generate reports that demonstrate compliance with regulatory standards. Organisations can also implement digital solutions to track probity checks, mandatory education, and other compliance certifications among their staff, which is particularly useful for large active workforces. These systems empower managers with real-time information on potential issues, allowing them to address problems before they escalate.

Embracing change

Integrating technology into the aged care sector can feel daunting. However, the benefits far outweigh the challenges as they can allow for enhanced care delivery and efficiency improvements. It is crucial for organisations to gain an understanding of their existing digital capability, gaps, and priorities before embarking on any technology modernisation project, as well as ensuring that their staff are adequately trained to use these modern technologies and that systems are in place to protect resident’s data and privacy.

How BDO can help

BDO’s Technology Modernisation services can support your aged care organisation in evaluating and transitioning from legacy technology to more robust systems to optimise your workforce. Contact our team today to learn more.