Bold move by Anglicare to expand their future - but is it private aged care or continuum of care?

Nine months into his role as CEO of Anglicare Sydney, Simon Miller has been able to convince his traditionally conservative board to outlay $20 million plus debt exposure to acquire 50% of two village operator LDK. By comparison, Anglicare has 23 big villages in Greater Sydney alone.

The deal specifically states that LDK will remain independent and can make its own way in the world.

So what was the attraction for Miller and his board?

The answer appears to be that Anglicare wants to learn about LDK’s private aged care model, its value proposition and LDK’s marketing.

LDK breaks the traditional village model on multiple levels and is delivering better outcomes for residents, staff and profits.

Private aged care?

For several years we have been calling the LDK model ‘private aged care’, because it offers to provide care support up to palliative care under the Retirement Village Act. They provide home care packages topped up by private pay care services.

At the same time Ryman in Melbourne has been championing the expression ‘continuum of care’, being the same as LDK, providing home support as much as possible in retirement village apartments and serviced apartments, but utilising its collocated RACs when high-level care is absolutely required.

Both LDK and Ryman promote the same value proposition – you will stay in your own home longer with them.

Ryman wants the attention of the Federal Government to get recognition that the continuum of care model will deliver multiple benefits for the whole community, plus drastically reduce the cost of aged care for the government. In NZ, with the continuum of care the dominant model, the average RAC stay is 20 months versus 32 in Australia, says Ansell Strategic.

The Government could save over 50% of their RAC funding.

Ideally this terminology will be sorted out so a single voice can be achieved.

Meanwhile, Simon Miller has made a big bet on the model, whatever its name, fast tracking a new direction for Anglicare.