Analysis of Australian Healthcare System for Aged Population

This report analyzes the Australian healthcare system for aged population, including health models adopted by healthcare organizations, industry trends, ethical issues, and factors influencing operating conditions.

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Health strategies

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Table of Contents
Introduction.................................................................................................................................................3
Definition of aged care segment..................................................................................................................4
Overview of competitive landscape.............................................................................................................4
Industry trends in aged care industry of Australia.......................................................................................7
Factors influencing to operating conditions...............................................................................................11
Ethical issues in aged care industry of Australia........................................................................................11
Conclusion.................................................................................................................................................13
References.................................................................................................................................................14

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Introduction
The aim of this report is to analyze the Australian healthcare system for aged population. In this
concern, the report is describing different health models adopted by different healthcare
organizations to be competitive in the associated industry. As well as, the report is describing
industry trend, ethical issues and factors influencing to operating condition in healthcare system
of Australia with example of Anglicare Australia, which is providing aged care services in the
country.

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Definition of aged care segment
In health care industry, the segment of aged care is defined as a special facility for the senior
citizens, which provides accommodation and other supports with daily living, exhaustive forms
of care and assistance towards independent living. These supports are recognized by the
Accreditation Agency and Aged Care Standards to get financial support from the Australian
government in the form of housing care subsidies for aged individuals. As per the Aged Care Act
1997, aged care is defined as residential aged care to provide personal caring services for the
aged persons (Australian Government, 2018). In this concern, aged care can be defined as
personal nursing services for the senior citizens to live their life healthy and happily.
The aged care industry covers a wide range of activities to provide support to the aged
population in the country. Generally, the industry covers several supports that are required by the
aging individuals to conquer the generating challenges in their routing activities. The major
activities included in aged care are as below:
 Appropriate care staff to meet the personal and nursing care needs of the aged persons in
the country (Australian Government, 2015)
 Provide healthy meals and better cleaning services for the aged individuals
 Furniture, furnishing and equipment for provision of that accommodation and care
 Convene any other needs that are specified in the subsidy principles of residential care of
the government

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Overview of competitive landscape
In Australian health care industry, NACA (National Aged Care Alliance) is considered as a
representative stiff for the peak national organizations in aged care with including service
providers, consumer group and future for aged care in the country. Anglicare Australia is well
known organization for the aged care segment in healthcare industry of Australia. This
organization is providing different care services such as retirement living, aged care services,
residential aged care and different care services to support the living activities of the aged people
in the country (Anglicare, 2018). Anglicare Australia is a non-profit organization of Australia
which is responding to meet the changing needs in the community. In addition, the organization
is overhauling employment services for the older people to provide them economic support. The
aim of this organization is to motivate the aged people and use their knowledge and experience
in startups (Azize, 2018). It is analyzed that there are different competitors of Anglicare within
the aged care segment of healthcare industry on Australia. The major competitive organizations
in this segment are Audiology Australia, Association of Independent Retirees Limited, Leading
Age Services Australia, Australian Red Cross, Palliative Care Australia, Retirement Living
Council and The Royal Society for the Blind, which are adopting different business models to be
competitive in the industry (NACA, 2018). In this concern, it is analyzed that it is much
competitive for Anglicare to sustain its aged care activities in the Australian healthcare industry.
The adopted business models by these healthcare organizations are Traditional model,
Biomedical model of health, Social model of health, Blended model, Patient-centred model,
Value based model and disruptive model. With the help of these models these organizations are
providing their care services in different ways to be competitive in the associated industry. Under
the traditional model, the organizations are providing care services to increase their revenue. The

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care providers treat the patients with different pharmaceuticals, psysio ot other care services,
hospitalization and refer the patients to other health professionals for better treatment. The
patients pay doctors for the care services. In this model, the care providers remain in control but
they may face barrier in coordinating care services in effective manner. This model does not
allow the needs of patients and avoids costly patients. As well as, the Biomedical model of health
is considered as a technical measure regards the disease in human body due to biological causes
(Halfon et al., 2014). In addition, the social model of health attempts to tackle the extensive
influence on health from different factors such as cultural, social, economic and environmental
factors rather than injury and diseases. The old aged people are influenced by these factors in big
manner so that major organizations are considering these factors to provide the aged care
services in better manner. This model is considered as a community method of preventing the
diseases and injuries in aged people. But, the outcomes of this model are hard to measure and not
capable to prevent entire diseases in from the aged population. Therefore, this model is
ineffective in attaining the objectives of aged care in better manner.
The blended model leads to capitation model in which the family doctors are paid based on
number of service provided. The goal of this model is to provide primary care for the individuals
by supporting long lasting and strong association with the care providers. At present time the
blended model is suitable for those individuals who have good financial position in the
community as the paid amount is higher as compared to other treatment. In addition, the patient-
centred model is much respective and responsive to the customer needs, preferences and values.
Through this model the care organizations can improve patient care experience and create public
value for the care services as well as can improve the business metrics (Rathert et al., 2015). At
present time most of the care organizations are adopting this model to be competitive in the

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associated industry. Under the value based methods the care providers are paid on basis of
patient health outcomes and amount of care services. As well as, the care organizations are
adopting disruptive health model to implement innovation in care services through the
implementation of technology to provide cost effective services. This model facilitates lower
cost business model to the care organizations. In this concern, it is analyze that different
organizations are adopting different health care models to be competitive in the health care
industry of Australia.
Industry trends in aged care industry of Australia
The health industry in Australia is shaping into a dramatic change and it is a mixed system that
includes the private and public care. The health care industry of Australia is one of the largest
employers and it is also growing with remarkable transformation as it is accountable for 13.7%
of entire workforce in Australia. In addition to this, it is also researched that aged care sector is
contributing for sizable workforce in which it has employed 3,50,000 in this industry over the
diverse range of job roles and responsibilities as nurse, care workers, management and
administrative staff. On the other hand, aged care industry is also contributing towards the
economic development of Australia as the economic value is measured around $13.5 billion in
the year 2015 (Health, 2016). In Australia, the old age people are facing the challenges of
managing the diseases such as Arthritis, Diabetes and Respiratory. With respect to this, the
industry is adopting the change in relation to technological, social and behavioral perspectives
towards these emerging challenges in aged care industry and major of them are as follow:
Demographic change: The demographic change will directly influence the aged care service of
Australia as the aging population is increasing. In context to this, it is also researched that

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structure of Australia’s population is transforming and longevity of elder people in Australia is
also increased.
(Source: Health, 2016)
In relation to the structure of Australian population is it changing as the proportion of population
from the age group as 15 – 64 years is increasing but the growth of aged care people is also
increasing around 3% per annum. On the other hand, due to the medicine capability and
technology the people are living for long.

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(Source: Japara, 2018)
Over the analysis, it is also researched that over the year 2055, it is expected that the people over
the 60 -70 years will live 5 years more as compare to the present age of longevity.
Funding of aged care: The funding for the health care system is challenging for the aged care of
Australia as the fund is attributed from private, public sources, residential care and home care
service. At the same time, the funding system is changing towards the consumer and market
driven as the consumer driven has appeared in significant aspect with recent reforms. The
consumer driven care is also concerned towards the user pays as means –testing has also
introduced the required level of income, if the consumer is meeting the criteria than it is needed
to contribute more towards the development of funding for aged care (Ibisworld, 2018).

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It is also expected that the aged care expenses will be just double in year 2055 so it is an issue for
industry.
Changing consumer preferences: The customer preferences are also changing, first of all the
most of consumers are interested in getting the care from home. Along with this, it is also
changing that the people who are moving towards the age care service they are intended to have
more personalized service (EY, 2017).
On the other hand, baby boomers are also changing as the age care is in highly demand and it is
also needed complex care. Further, the diversity is also complex as the people come from

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different culture and they want. It is also challenging that the chronic disease among older age
people.
Technological change and aged care workforce: The technological change and reform is also
resulted into the issue for the health care industry of Australia a global as well because it has
reduced the jobs for manually but it is also creating opportunities for the industry for non-
manual caring for the aged people in the industry.
Factors influencing to operating conditions
In Australia, the aged care practices are supported by the government through providing the
practical guidance on financial support and boost the training education and professional
development for the care givers (Ibisworld, 2018). In this concern, the operating condition for
the aged care is growing in Australia. However, there are different factors such as political,
economic, social, technological, environmental and legal factors that are influencing to these
operating conditions in the healthcare organizations. It is observed that Australia has political
stability and strong economic condition, which is supportive for the aged care in Australia. As
well as, the environmental and technological factors are boosting the care services in better
manner. The legal factors such as government policies regarding healthcare services are much
strict for the care organizations to provide quality treatment for the individuals. In this concern,
the operating condition for ages care in Australia is at growing level and the factors are
supporting the care services in effective manner.
Ethical issues in aged care industry of Australia
The aged care industry is facing several challenges as funding, preferences changes and
increased demand and the ethical issues are also faced by the aged care industry. In context to the

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Australian perspective, the major ethical issue is as the confidentiality about the personal details
about the aged people because all the information are declared to the care residency and people
are insecure about this. Along with this, the people are also facing the problem of consent need
about any changes in the care practices for aged people because aged people live the long life
and they might not have proper control over their so overall information should be told to them
(Australianageingagenda, 2014). In order to manage the ethical issue, the industry can bring the
policy about the confidentiality maintaining for the aged people to not to share their personal
information to their family as well. On the other hand, in order to maintain the consent aspect
than the industry can establish a committee in order to manage the problems of aged people.

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Conclusion
From the above discussion, it can be concluded that there are different factors that may influence
to the healthcare system in Australia. In this concern, the healthcare organizations must consider
these factors and healthcare models to be competitive in the industry and provide better care
services for aged person.

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References
Anglicare (2018) We are a Christian not-for-profit supporting people at all stages of life.
[Online]. Available at: https://www.anglicare.org.au/ (Accessed: 5 December 2018).
Australian Government (2015) Ageing and Aged Care. [Online]. Available at:
https://agedcare.health.gov.au/ensuring-quality/residential-aged-care-sanctions/definitions
(Accessed: 5 December 2018).
Australian Government (2018) Residential aged care facility. [Online]. Available at:
https://meteor.aihw.gov.au/content/index.phtml/itemId/384424 (Accessed: 5 December 2018).
Australianageingagenda, (2014) Aged care research an ethical minefield: Bernoth. [Online].
Available at: https://www.australianageingagenda.com.au/2014/07/17/age-care-research-ethical-
minefield-bernoth/ (Accessed: December 05, 2018).
Azize, M. (2018) Employment services are failing older Australians. [Online]. Available at:
http://www.anglicare.asn.au/news-and-media/latest-news/2018/10/23/employment-services-are-
failing-older-australians (Accessed: 8 December 2018).
EY, (2017) Will Australian aged care providers invest, acquire or consolidate for growth?
[Online]. Available at: https://www.ey.com/au/en/industries/life-sciences/ey-aged-care-insights-
february-2017 (Accessed: December 05, 2018).
Halfon, N., Larson, K., Lu, M., Tullis, E., and Russ, S. (2014) Lifecourse health development:
past, present and future, Maternal and child health journal, 18(2), pp. 344-365.
Health, (2016) Australia’s aged care sector: economic contribution and future directions.
[Online]. Available at:

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https://agedcare.health.gov.au/sites/g/files/net1426/f/documents/12_2016/aged_care_guild_-
_enclosure_1_-_deloitte_access_economics_-_australia_s_.pdf (Accessed: December 05, 2018).
Ibisworld, (2018) Aged Care Residential Services - Australia Market Research Report. [Online].
Available at: https://www.ibisworld.com.au/industry-trends/market-research-reports/health-care-
social-assistance/aged-care-residential-services.html (Accessed: December 05, 2018).
Japara, (2018) Future Trends in Australian Aged Care. [Online]. Available at:
https://japara.com.au/news/future-trends-in-australian-aged-care/ (Accessed: December 05,
2018).
NACA (2018) ABOUT NACA. [Online]. Available at: http://www.naca.asn.au/about.html
(Accessed: 5 December 2018).
Rathert, C., Williams, E. S., McCaughey, D., and Ishqaidef, G. (2015) Patient perceptions of
patient‐centred care: empirical test of a theoretical model, Health Expectations, 18(2), pp. 199-
209.