This study deals with suggesting business proposal for Elder care Center in the category of Home Health care. This business proposal has taken into consideration on elder care center established in Eldercare in South Australia. This organization operates in more than 22 countries. Eldercare aim is to provide quality services to elderly as well as disabled persons needing home and personal care services (West et al. 2014). Home care as well as home care professionals is considered as typically low for moderate income women who work independent contractors.
Home health care at Eldercare in South Australia offers 1000 aged care bed in more than 13 sites in Metropolitan Adelaide and Yorke Peninsula. Eldercare provides retirement living accommodation for more than 35 years as well as upgraded in building new homes in meeting the changing needs of individuals (Wang and Verma 2012).
Set up Costs
The process of creation of an independent elderly care agency will require funding for the following:
- Establishing the company
- Forming the corporation
- Acquirement of the appropriate licenses (Eckert 2012)
- Entity establishment (incorporation, partnership, LLC and many others)
- Establishment of the office Rent of office space and utilities
- Rent of office space and utilities
- Communication Tools and phones
- Internet connections
- Back Office arrangement
- Hiring care givers and certified nurses
- Training the staff
- Insurance coverage
- Office staff
- Marketing for acquirement of clientele
- Print brochures, leaflets, business cards
- Development of website
- Advertisements, promotional events and other sponsored events
The set up cost for the elderly care center includes the purchasing of furniture, and installations of test computerized medical system and other clinical equipments. It is estimated that the total requirement for establishment of the elder care center is $666700 (refer to appendix for the calculation on the estimated cost of establishment of business).
- Legal Costs
The legal costs for elderly care businesses are extremely regulated where the business have the need to meet the requirements of the government. At the time of formation of the business entity, it is important to arrange adequate financing and establishing payrolls for different important activities of the business for elderly care agency. The legal costs include the state permits for ensuring the clinicians have different neat background with discipline free professional licenses. In addition to this, the home health care businesses also need to comply with the rules and regulations for Medicare (Becker 2012). Australian Aged Care is very complex owing to different state as well as federal funding. The home and health care agencies for the elders need to meet the Aged Care Standards and Accreditation Agency. Again, the elder care center also has the need to meet the standards set by the Office of Aged Care Quality and compliance in NSW. The business needs to incur legal costs for meeting the legal requirements for setting up the elder care center (Humanservices.gov.au 2016).
- Administrative Expenses
The administrative expenses for setting up the elderly care center includes the costs for employing the personnel (for example, the certified nursing staff), finalizing different contracts with medical suppliers, inspection of operations, collection of donations. In addition to this, the administrative expenses also include the placement of advertisements, distribution of brochures and training of staff among many others (Eckert 2012). The administrative expenses associated to the business of elderly care center are the administrative and clinical pay roll, depreciation, property taxes, utilities, insurances, payroll taxes, grounds and buildings including other expense accounts (Aph.gov.au 2016).
Key departments involved in the project are:
- Human Resource and administration
- Quality Control
- Increase in demand
The fraction of population of Australia aged above 65 years has increased from 8 per cent recorded during the year 1970-71 to 13 per cent in the year 2001-02. The number of aged population is expected to double by the year 2050 (Fundamentals of elder and special needs law, 2012). Therefore, the aging people will require long-term elderly care. The elderly care industry is rapidly growing in Australia and is estimated to expand further.The-governing unit has by now initiated widespread alteration to taxes as well as benefits to assist the aging population. New South Wales, Queensland and Victorian governments are also offering age pensions to the aged people along with social security payments (Humanservices.gov.au 2016). Again, the Commonwealth also provides funds for nursing homes and other community services. This creates demand for the elderly care centers in Australia and makes it a feasible business proposal (Aph.gov.au 2016).
- legal regulations and licenses
The company requires funds for acquiring licenses as well as registration for starting an independent elderly care center. The company needs to acquire comply with the rules and regulations laid down by the Australian Aged Care Quality Agency in order to maintain the standards. The company also needs to acquire licenses as well as accreditation from different aged care services in order to ensure good quality services to aged people (Eckert 2012). The business can avail benefits from governing bodies both at local and national level for extensive marketing support, built in support system, proven systems and time-tested instruments among many others. The adult care business also needs to align with the National Strategy for Ageing Australia, Common wealth National Strategy for the Ageing Australia, Aged Care Act 1997, Aged Care Principles and Home and Community Care Act 1985 among many others (legislation.sa.gov.au 2016). There are incentives that can offer self-provision of retirement earnings through superannuation, alterations in the preservation age, pension bonus system. These policies of the government can boost the elder care industry.
Expected Changes at workplace
This particular business proposal helps Eldercare for solving current problems such as retention of talented employees. Eldercare brings new norms and regulations in their home health plans and this is the reason why there is high rate of absenteeism as well as attrition rate. Eldercare values time, skills as well as expert opinion from staff members. They are mostly committed towards providing fair and structured work schedules by explain the rights and responsibilities for each team member (Swayne, Duncan and Ginter 2012). Eldercare offers more resident-oriented as well as home-model care in comparison with competitors. It is expected that innovative use of Elder Assistants lower the cost of providing special care on considerable terms. Expected change at Eldercare also view at the fair wages as well as team structure based on lower dissatisfaction level leading towards turnover rate among staff members.
Probable Return on Investments
It is important to consider the fact that probable return on investments requires extreme range of satisfied employees working for Eldercare (Morris 2014). These employees should be committed, loyal as well as engaged with their role and responsibilities in desired form.
Reduction in Turnover Costs
Eldercare should find ways in involving less recruiting costs as well as marketing costs at the same time. Addition to that, there should be fall in the employment agency fee for future analysis purpose.
High Productivity Rates
Eldercare probable return on investments requires increased in the level of productivity as well as less operational costs for gaining increased market share in the most appropriate way.
Quality service to customers
Eldercare requires paying close attention to the potential satisfied customers as well as making effort in improving in the market reputation. Efforts should be made in having less business failure risks as far as possible.
Reduction in Absenteeism
Good working condition and facilities to the employees will reduce the rate of absenteeism. Employees will work hard and make effort in completing the projects on time if they are happy with the present working environment. It will therefore lead to high productivity. Eldercare should make effort in conducting low financial as well as administration cost in an effective way.
Improvements in Elder Care Health
Eldercare has the ability in making the required changes by keeping strong organizational culture as well as high engagement levels.
Risks and Strategies
Inability to supervise employees due to lack of support and quality check
Risk Mitigation Strategy
Top-level management should take measures in providing complete guidance at the induction sessions (Kavaler and Alexander 2012). Quality check should be emphasized at the processing level whereby top-professional management took responsibility in investing the Quality and Assurance in the most appropriate way.
Risk involved in certain abuse and violence
Risk Mitigation Strategy
In conducting the elder plan, several abuses and violence should be mitigated as far as possible. Their children abuse elder people at older age and they seek shelter in these health care services.
This business proposal has to be approved from Human Resource Manager. They will aim at making the modifications on recruitment policy after setting up contract with top-management professionals. Meetings are to be held in discussing on the key points of business proposal on elder care center.
For More Information
For setting up and future commencements, it is required to contact Human Resource Manager. In case of Budgeting, Finance Controller should be contacted at the specified time.
Aph.gov.au. 2016. Home – Parliament of Australia. [online] Available at: https://www.aph.gov.au [Accessed 18 Aug. 2016].
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Humanservices.gov.au. 2016. Australian Government Department of Human Services. [online] Available at: https://www.humanservices.gov.au [Accessed 18 Aug. 2016].
Kavaler, F. and Alexander, R.S., 2012. Risk management in health care institutions. Jones & Bartlett Publishers.
legislation.sa.gov.au. 2016. [online] Available at: https://www.legislation.sa.gov.au [Accessed 18 Aug. 2016].
Morris, V., 2014. How to Care for Aging Parents: A One-Stop Resource for All Your Medical, Financial, Housing, and Emotional Issues. Workman Publishing.
Swayne, L.E., Duncan, W.J. and Ginter, P.M., 2012. Strategic management of health care organizations. John Wiley & Sons.
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West, M., Eckert, R., Steward, K. and Pasmore, B., 2014. Developing collective leadership for health care. London: The King’s Fund.