Financial sustainability can be a complex and often misunderstood concept, varying significantly from the operational level to the boardroom. In the aged care sector, financial health is influenced by numerous organisational factors, and it’s not solely about the numbers. While middle managers are tasked with budget management, research indicates that many lack the skills to effectively analyse and address their department’s financial status.

This presentation isn’t a research paper but rather a practical exploration of the elements to consider when facing a significant deficit. It will provide practical tips on identifying why an organization may be struggling and offer a roadmap for recovery, addressing every aspect of the business from the floor to the boardroom.
Over 25 years of addressing financial turnarounds the author has identified numerous factors that contribute to deficits in the health sector. Often, the issue isn’t a lack of funding but rather uncontrolled expense growth or failure to understand revenue drivers. Organisations tend to allow expenses to grow without understanding why. It is optimising revenue as well as interrogating the expenditure items and understanding the clinical and non-clinical drivers of costs that start to form a strategy for successful financial turnaround.

Drawing on a background in clinical, finance, population, and corporate planning both in Australia and internationally, the author will share insights into addressing financial distress in the aged care sector. This presentation is underpinned by a track record of turning deficits of over 10% into surpluses of $5 million within 12 months in both aged care and the hospital sector. It will cover analysis, workforce position interrogation, budget management, workforce productivity, staff capability building, and addressing aged care quality and safety issues. The focus will be on practical steps to rectify quality and financial issues and ensure financial sustainability.

The presentation will also delve into the critical elements that must be evaluated when assessing a failing organisation. Common failings in these areas are often seen across many distressed healthcare agencies. By identifying these issues, the presentation will establish a framework that can guide the board in creating a roadmap to recovery.