Victoria has just released its new retirement village regulations, including for the first time acknowledgement of home care as a village service – operators beware.
From the snip of the new regulation above, the Victorian Government is saying if a resident receives home care, their contract can’t be terminated for no longer being independent.
It does not mention that the Federal Government has increased the number of Home Care Package types from four to 10, including palliative care, to further support people to stay in their own (retirement village) home longer.
This means village residents can have really poor acuity and still be in a village. And it is happening now. At our VILLAGE SUMMIT last month, around 30% of 650 village managers put their hand up to say their residents that are receiving high care but the operator can’t terminate their contracts (to exit them from the village).
Our hypothesis is that as older Australians and their children realise that not only are there very few aged care beds available but they will have to co-contribute cash for the aged care housing and daily living costs, they will decide to stay put in their village home.
With the first wave of Baby Boomers reaching home care age (average age is 82), and residential care age (average is 84), they will start changing the ratio of healthy to unhealthy residents in a village.
In summary, village beds will become aged care beds, lots of them, and village operators will need new staff and new revenue streams to deliver the care services.
Villages will become private aged care, like Odyssey Lifestyle Care Communities and LDK Seniors’ Living.
To understand this new village business model, join us at the LEADERS SUMMIT where Byron Cannon will examine how LDK successfully converted the DMF contract village The Landings, to a membership private aged care village. And staff went from about five to 75.
The Victorian Government has obviously seen the same trend, thus the new regulations. 2025 will be the year that independent living villages will start evolving into care accommodation.