The 'New Normal' in Aged Care Asset Management: Navigating the Aged Care Act (Cth) 2024
Australia’s aged care sector is entering a pivotal era. The Aged Care Act (Cth) 2024 shifts the focus from prescriptive rules to outcomes-focused standards, fundamentally changing how aged care providers manage their assets, finances, and governance. This can present both new challenges and opportunities when seeking to strengthen financial resilience while continuing to deliver high-quality care.
We believe understanding these changes and adapting asset management strategies is critical for aged care providers to meet compliance requirements and position their organisation for sustainable growth. Mercer’s latest report, “Next-Generation Aged Care Asset Management: Addressing the ‘New Normal’”, offers a comprehensive guide to help providers seeking to navigate this evolving landscape with more confidence.
What does the report cover?
The Aged Care Act (Cth) 2024 (the Act) sets new financial, investment, and liquidity standards that require aged care providers to rethink how they manage their asset pools. This report looks to break down the regulatory changes and provide some practical strategies to help aged care providers:
- Align investment policies with the new outcomes-focused framework
- Optimise asset allocation to support financial sustainability and care delivery
- Manage liquidity effectively to meet operational needs and regulatory expectations
- Strengthen governance and compliance processes to satisfy the Act’s requirements
Key insights include:
- The evolving role of investments in aged care and their impact on service quality
- How to balance risk and growth in your asset portfolio under the new standards
- A timeline for compliance and critical milestones to prepare your organisation
- Mercer’s collaborative approach to delivering tailored investment solutions