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Self-funded care in action

RETIREMENT LIVING RESIDENTS ARE OPTING TO FOOT THE BILL AT YUKANA

Set in the regional city of Toowoomba, Yukana provides a rare offering of co-located retirement living and aged care. The not-for-profit retirement village is one of a handful in Australia where aged care is 100 per cent self-funded by the residents.

The set up

Retirement living is offered in 81 Independent Serviced Units, a mix of one-bedroom and two-bedroom dwellings within a typical Deferred Management Fee model. At Yukana, residents are attracted to the concept of being able to receive care on the same premises while retaining familiar connections with other residents and staff.

This is achieved by a move to one of 83 Total Care Apartments. Here, Yukana provides the full range of care from basic assistance with daily living through to high care including dementia, secure dementia and palliative care. A team of Registered Nurses and carers are onsite around the clock.

How the self-funded model of aged care works

Care is provided as a private service, where the terms of service are agreed to in a contract between the provider and the resident.

The Residence Contract for a Total Care Apartment is similar in structure and style to the contract for an Independent Serviced Unit. Both contracts are regulated by the Retirement Villages Act.

Who pays for it?

Residents pay for everything outright, including accommodation, care and consumables. If they receive a pension, Home Care Package or other government benefits, they will continue to receive those as usual. However, they do not receive any government subsidy toward their accommodation and care fees.

Yukana does not receive any government funding and the Aged Care Funding Instrument doesn’t apply, therefore residents are not required to be assessed with the Aged Care Assessment Team (ACAT) or undergo an Income and Assets test. to contribute the full amount, they are charged a daily license fee, similar to the Refundable Accommodation Deposit/Daily Accommodation Payment principle.

For care, residents pay a Personal Services Charge based on their level of care need. The rate structure is the same for everyone and is not contingent on a person’s wealth. There are no means tested fees.

The ability for the operator to set fees as they wish results in a business-to-customer arrangement whereby residents (or their representatives) decide whether or not they agree with the provider’s value assessment. Is the quality of care on offer worth the price that has been set by the operator?

Current resident levels suggests that it is. At the time of writing, occupancy in Yukana’s Total Care Facility is at 96 per cent.

What is attractive to residents?

The equality of the fee structure resonates well. Not having to complete an ACAT or an Income and Assets form also makes an arduous moving process simpler.

Underpinning this is a fundamentally different approach to care, where providers can set fees that ensure staffing levels and profitability can be adequate. This ultimately results in a positive experience for residents.

Chris Kelly, General Manager says it’s good for consumers and it’s good for operators.

“The Retirement Living units provide safety and stability for residents who are not mentally prepared to enter a care environment,” he said.

“The Care Apartments are available when they are ready to make that transition. They keep their connection with friends and staff they love and stay within the framework that they know.

“For operators, the self-funded model provides a platform from which to set your own price and have the flexibility to pass on the true cost of care to consumers.

“Our mandate is to provide a consistently great experience that backs up the credibility of our reputation.

“We rely on paying customers and their word of mouth. It’s that simple.”

For more information visit www.yukana.org.au

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