Aged care intervention: Navorina opts in to co-op to help keep doors open

Under the co-operative structure, the seven aged care operators will share administrative costs, freeing up management to focus on ensuring quality care for residents.

By sharing administrative duties across all seven facilities, it is intended to “ensure ongoing housing security for residents and their families”.

The co-op has been formed as part of Care Together, a Federal Government funded program to help establish social care co-ops and mutuals in regional areas, where other service models have failed.

Joining Navorina in the co-op is Cypress View Lodge at Coleambally, Burrowa House at Boorowa, Adina Care at Cootamundra, Uralba Hostel at Gundagai, Lachlan Lodge at Hillston and Edward River Gardens at Moulamein.

The co-op was registered following an initial meeting in June, and the first official meeting will be held in September.

Seed funding will be the primary discussion point.

Until then, a sub-committee has been established to search for a manager to run the co-op.

Navorina chairman Matthew Watts admitted the local aged care provider was experiencing resource challenges, which led to opting in to the co-op.

He said the co-op model recognises that some aged care operators in rural and remote areas might be forced to close their doors under such pressure.

“Navorina, like so much of the aged care sector, has struggled recently with rising costs, substantially increased compliance reporting and regulatory requirements, and desperate shortages in qualified and skilled staff in all areas of the business but particularly care staff.

“The co-op aims to pool resources and support members in different ways to improve sustainability of regional providers.

“Primary benefits will be in accessing expertise and resources that members need but struggle to find in the local area, or even afford on their own, and pooling of knowledge and information sharing.

“Examples might include recruitment, immigration, HR (human resources), and compliance expertise.

“Cost savings may come from the combined buying power, and we’re hoping to save on overheads and running costs such as electricity, IT systems.

“The exact savings can't be estimated, but any cost savings that are realised will be reinvested in the organisation's long-term viability.”

Mr Watts said importantly, the co-op is not expected to affect current staffing arrangements.

“It’s hoped that the co-op will support and have a positive impact on staffing; either by gaining resources and support we otherwise couldn’t, or being able to offer our services to other co-op members for a resource we have that they don’t,” he said.

Mr Watts said the Murrumbidgee region was identified as an area deemed ‘most in need’ of by the Royal Commission into Aged Care Quality and Safety.

“The program initially consulted a range of aged care providers throughout the Murrumbidgee Local Health District, with the final membership being made up of those providers who chose to participate in the program.”

Eventually, the co-op hopes to expand its services to other aged care providers.