Governance Institute’s Guidance on Governance in The Aged Care Sector

The ongoing scrutiny put on aged care sector by the Royal Commission and media focus, coupled with the added weight of the COVID-19 crisis has put an enormous pressure on directors and managers of companies in the industry.

To assist with governance in this sector, the Governance Institute revised and relaunched its guide to help the embattled sector navigate an increasingly complex set of regulatory and operational challenges.

With the prediction that 23% of the Australian population is forecast to be 65 years and over by 2066 and estimates that by 2050 the aged care workforce will need to have grown to around 980,000 workers, there are very specific risks and opportunities that need to be considered by directors in this sector. The guidance “will assist current and future board members as scrutiny and demands on the aged care sector continue to increase” and is ‘mandatory reading’ for anyone currently on the board of an aged care provider, whether they are new in the role or not, as well as anyone considering taking on a board position.

The relaunched aged care governance guidance covers:

• The unique challenges of governance in a changing aged care sector, including:
  • a more competitive environment with less reliable funding from government.
  • the user-pays system. As consumers are required to pay more, they will become more demanding as to the type and standard of care they receive.
  • many consumers are entering aged care much later in life with increasingly complex health care needs. Consequently, their medical and clinical care needs are more complex and acute.
• Issues which a board should consider when inviting a new member onto the board of an aged care provider.
• Issues you should consider before accepting an invitation to join the board of an aged care provider.
• A checklist of information a potential board member should receive or request
• A look at the stakeholders of an aged care provider — and ways to interact and build relationships.

Changes incorporated in the revised guidance include the latest statistics on the industry showing its growth and likely further increases, a copy of the Aged Care Quality Standards, plus new content on clinical governance.

To download the guidance, click here