An Industry Analysis Of The Aged Care Segment In Australia, Essay.

Students are to investigate an industry segment of the Australian healthcare sector and examine and evaluate its model of operations and growth over the last 10 years. Recommended industry segments include: 

• General public or private hospitals
• General practices
• Specialist medical services
• Pathology or diagnostic imaging services
• Dentistry or other related services
• Allied healthcare services
• Pharmaceutical industry
• Aged care

However, students are encouraged to determine the scope of their analysis in consultation with their lecturer. 

The industry analysis must be in report form, and should present appropriate criteria or business analysis tools as a framework in which to identify and analyse the challenges and opportunities confronting the segment. It should draw from a range of government and academic sources, as well as industry reports. It should cover: 

• A definition of the industry, outlining its main activities.
• An overview of the competitive landscape, identifying and describing major competitors or organisations within the segment and their business model.
• Industry trends, presenting an overview of operating conditions and factors influencing operating conditions 
• Ethical issues faced within the industry.

Your analysis should focus on the environmental factors influencing operations within the sector.

The healthcare sector in the world has been of importance and concern to every living human as health and wholeness forms part of our everyday living as it is a basic need. We all require to be fit and healthy in order to carry out day to day activities. Health is defined as the state of living free from disease or illnesses and being able to perform physiological as well as physical processes normally without strain. Health care refers to the provision and delivery of care to the public by a provider of the same. The health care sector has several industry segments that are of equal importance. Aged care is one of those segments that has risen to existence in Australia over the last decade. Aged care refers to provision of care and medical attention to the elderly part of the population (Burrell 2017). Hospitals specifically for the care of the elderly have been set up of late since they have special needs as compared to the young mid-aged population. As one ages, the body begins to develop changes in terms of metabolism of drugs and food and other physiological changes. The old people therefore require medical attention that is slightly different from others as their bodies have undergone these changes. For example, the elderly may require special equipment to aid in walking which the young adults do not need. Vision and eye sight also changes with age and the old may not have as much visual acuity as they used to have when they were young (Chen 2014). This creates need to approach their care in a bit different manner than the rest. The aged past 64 years of age also form part of the dependent population as they have retired and no longer working to support themselves. This has led to the creation of aged care systems that consider these aspects in regards to medical bills thus facilitating care for the elderly.

The aged care segment has evolved with time and there are a number of systems and models that have been laid therein. The establishment of user pays system in the industry has proven to be of essence. It operates in the sense that in order to receive a particular medical care, someone has to pay for the service for it to be delivered in accordance to however they desire. The main activities of aged care is to ensure that the older population segment receives care whenever and wherever in need of it (Walker 2018). It focuses mainly on ensuring the elderly receive both medical and special needs care at a low and affordable cost considering the fact that majority are not working. The creation of elderly and nursing homes is a trend that has emerged in an effort to accommodate the elderly so that they have a sense and feeling of belonging and identify with other elderly people. The user pays model enables one to acquire a range of services they require as they pay for them (O’Loughlin, 2017). Since the government subsidies may not be enough to cater for all the needs of the elderly, the user pays model leaves room to acquire more in the manner that one desires. For example, the elderly may prefer to live in a nursing home where meals and care is provided to them promptly by the giver and where they interact with their elderly counterparts. This services are provided at a certain definite cost that they pay so as to receive it. The establishment of private hospitals that cater for the elderly needs is also an upcoming trend. Because the overly aged individuals cannot afford to pay for expensive services which they may require such as chemotherapy and radiotherapy incases of cancer that are only offered by such hospitals, the government has chipped in to cater for some of the costs (Martyr 2015). The partnership between the government and not only public but some private hospitals is an emerging trend in the industry that cannot be disputed. It is said that for at least 2 elderly people aged above 65 years, there are about 10 people who are working to support their needs where needed. In the user pays system as earlier mentioned, the services availed for these elderly in such a case where they cannot afford to pay for them are paid for by the working relatives who are tasked to cater for their needs (Somerville 2016).

Competition

As any other industry in the business world and market, the segment is faced by a number of competitors aimed at achieving the same delivery. The existence of all round hospitals that cater for both the young and the old have proven to be quite competitive to those that are specialized at caring for the elderly alone (Warburton 2016). This has been brought in by the fact that those that have specialists for both young and old tend to be cheaper as compared to those with specialists for the old. This is because they draw their funds from majority of the population as compared to only part of the population hence their returns are quite enormous. Those specialized for the elderly alone get their funds from the elderly alone hence the need to raise their service costs so as to cater for equipment, employees and many other resources that are of need. Public hospitals offering the same services for the elderly have also shown competition to private ones offering the same. As stated by (Vahabzadeh 2018), this is due to affordability as well since the public hospitals tend to be quite pocket friendly as the government is involved in giving subsidies. The private care givers as well give competition to public ones as they are more flexible in that they can bring the care to the elderly at the comfort of their residential places as they get to be paid for the transport costs incurred. The private givers also deliver the service as required by the receiver and this has made majority of people to opt to them as compared to seeking the service in public places where they have to travel from where they live and wait to receive a service.

In any industry, there are forces that affect and regulate the operations taking place. These forces are factors that shape the industry into a certain manner and influence it to follow a certain direction as required (Curryer, 2018). In the aged care segment these factors can be classified into environmental, social and physical factors that influence its delivery. Affordability of a certain care service is a primary factor influencing aged care. The government of Australia plays an important role in ensuring that costs in public hospitals are cut off for the sake of the elderly. This is by issuing subsidies and enacting laws that favor the acquisition of some services by the elderly at a low or no cost. The government laws are therefore an important play maker when it comes to aged care. For example according to the laws of the land, it is the primary duty of a care giver to ensure that there is enough equipment required for delivery of a service to the elderly. The laws also emphasize that the provider is there for the receiver and not the receiver for the benefit of the provider. Provision of enough funds by the government for the purchase of equipment has helped counteract some costs incurred by the institution hence lowering costs (Welch-Ross 2016). Accessibility is of significance when it comes to delivery. Since the elderly form part of the inactive population, it becomes quite tedious for them to travel from place to place in search for care. The service delivery point should therefore not be far from the place of residence since it might be an emergency case as they are vulnerable to infections due to declined immunity levels. It should in addition be easily accessible. There are several factors that affect accessibility of a health delivery station. These include transport network systems. The roads and infrastructure should be well maintained and transport stations within reach.  The transport systems should also be fast enough to avail an ailing person to the center as soon as possible in cases of emergency (Eckermann 2016). The elderly are vulnerable to contracting age related conditions such as hypertension and therefore the care provider opts to be within reach. The user pays system for example creates room for the provider to live with the individual in need of the care hence curbs crisis related to emergencies. The location of health centers should also be strategic where everyone can access them. Availability of the health providers is crucial. The number of healthcare providers according to WHO is aimed at having one care provider for every one citizen. The number of hospitals should be as well many so as to ensure the elderly are well cared for. The availability of equipment to care for the elderly is equally of value. The number of equipment in a health center should accommodate every patient in the facility.  Health education is of essence whenever the elderly are involved. As echoed by (Holmes 2016). The elderly have the right to access information from their care giver which may be of relevance in terms of managing some conditions that are self-manageable. Health education assists the elderly to improve on their diet and eat healthy. This is of essence in curbing occurrence of some diet related disorders. The elderly are just like any other human being and require emotional support. The care provider should be capable of providing care emotionally by giving words of hope in cases where the elderly are sick offering comfort in cases where they live in nursing homes away from their relatives. The idea of the elderly living with other old people also helps improve the social aspect of the elderly (Weiss 2016). The environment and surrounding that the elderly interact with is an aspect that ought not to be ignored. There should be equipment and well placed modifications that enable the elderly to cope with movement and the environment at large.

Factors Affecting the Industry Segment

Proper morals and conduct are of essence in any given institution or industry. Professionalism is a key factor when it comes to ethics. Several ethical issues in regards to aged care are subject to discussion. The care giver must provide care in the most professional way possible. A patient-doctor relationship should be maintained throughout the care delivery. The care giver should and must always seek consent from the person receiving the care before exercising any procedures or contact with them (O’Keeffe 2016). The care giver should also be kind and should answer any questions that the receiver might have regarding their health or any procedures performed. Confidentiality is also key. Any information relayed by the patient should remain there and the files of the patient should be kept safely and with utmost confidentiality. Any form of malpractice is punishable by law and is therefore unethical. The care giver should exist for the recipient and not the latter for the former (O'Sullivan 2016). Therefore any form of treatment should be for the good of the patient and his/her recovery. Any harm performed during the delivery of the service is therefore liable to compensation as required by the recipient. Equality is as important as any other ethical issue. The care giver should never be biased in any manner. They ought to deliver the service without seeking gains.

Conclusion

In conclusion the health of every citizen is a priority and should be treated with utmost respect and importance as required. Aged care has been welcomed in the world today as the elderly display wisdom in any given society and are therefore of essence. Sustainable health provision and care forms part of the sustainable development goals and therefore all citizens should work together to ensure it is achieved. New models in the segment are developing to ensure this part of the population is treated with equal importance. The development of the user pays model has shown progress in the industry over the past 20 years. The government contribution to the industry has also helped boost the development of aged care the whole health sector at large.

References

Burrell, S., 2017. Governance in aged care in a time of disruption. Governance Directions, 69(2), p.88.

Chen, Z., Song, Y., Yu, J. and Wang, J., 2014. Differential development strategies of aged care support and continuity services in China, Japan, and Australia. Journal of Clinical Gerontology and Geriatrics, 5(2), pp.36-41.

Curryer, C., Gray, M. and Byles, J.E., 2018. Older Women’s Expectations of Care, Reciprocity, and Government Support in Australia.‘Am I Not Worthy?’. Ethics and Social Welfare, pp.1-13.

Eckermann, S. and Sheridan, L., 2016. Supporting medicare health, equity and efficiency in australia: policies undermining bulk billing need to be scrapped. Applied health economics and health policy, 14(5), pp.511-514.
Holmes, B., 2016. The state government needs to listen to the community. Lamp, The, 73(8), p.5.

Martyr, P., 2015. Old Age in Australia: A History.

O'Keeffe, D. and Egan, N., 2016. Providers revise budgets as millions cut. Australian Ageing Agenda, (Jul/Aug 2016), p.26.

O’Keeffe, D., 2016. CFOs eye challenges, opportunities. Australian Ageing Agenda, (Mar/Apr 2016), p.28

O’Loughlin, K., Kendig, H. and Browning, C., 2017. Challenges and Opportunities for an ageing Australia. In Ageing in Australia (pp. 1-10). Springer, New York, NY.

O'Sullivan, B., 2016. Finance and accommodation for aged and disabled clients. Estate & business succession planning: a practical and strategic guide for the trusted adviser, p.417.

Somerville, F. and Greene, L., 2016. CDC in residential: Writing's on the wall. Australian Ageing Agenda, (Mar/Apr 2016), p.26.

Walker, C. and Peterson, C.L., 2018. A sociological approach to resilience in health and illness. Journal of evaluation in clinical practice.

Warburton, J. and Mahoney, A.M., 2016. The aged care sector: Residential and community care. Understanding the Australian Health Care System, p.121

Weiss, C., Chlond, B., Heilig, M., Wassmuth, V. and Vortisch, P., 2016. Who Uses Freeways and Who Pays for Them? Model-Based Analysis of Distribution Effects of Toll Tariff Systems in Germany. Transportation Research Record: Journal of the Transportation Research Board, (2563), pp.88-95

Welch-Ross, M. and Hendrickson, C., 2016. TRB Special Report 315: Funding and Managing the US Inland Waterways System: What Policy Makers Need to Know. TR News, (302).

Vahabzadeh, A., Keshav, N.U., Salisbury, J.P. and Sahin, N.T., 2018. Improvement of Attention-Deficit/Hyperactivity Disorder Symptoms in School-Aged Children, Adolescents, and Young Adults With Autism via a Digital Smartglasses-Based Socioemotional Coaching Aid: Short-Term, Uncontrolled Pilot Study. JMIR mental health, 5(2).