DO YOU PAY THE SAME DAILY RATE IN A FIVE STAR HOTEL AS YOU DO IN A ONE STAR HOTEL

1

• DO YOU PAY THE SAME DAILY RATE IN A FIVE STAR
  HOTEL AS YOU DO IN A ONE STAR HOTEL?
•  
• IN AGED CARE, YOU DO!

2

• DAILY CHARGE
•  
• SINGLE ROOM IN 1972 FACILITY 16.25
•  
• BED IN DOUBLE ROOM IN 1972 FACILITY 16.25
•  
• BED IN FOUR BED WARD IN 1972 FACILITY 16.25
•  
• SINGLE ROOM WITH ENSUITE IN 2004 FACILITY 16.25
•  
• BED IN DOUBLE ROOM IN 2004 FACILITY 16.25

3

• 1997 ACCOMMODATION BOND IN HIGH CARE
  90,000
•  
• BOND PAID BY PERIODICAL PAYMENT at 8.5 20.95
• BOND RETENTION AMOUNT 6.55
•  
• TOTAL PERIODICAL PAYMENT 27.50
•  
• ACCOMMODATION CHARGE SET IN NOVEMBER 1997 12.00
•  
• WHY WAS IT SET SO LOW?

4

• EXISTING BUILDINGS
•  
• Space and Privacy requirements will be-
•  
• No more than 4 residents to a room
•  
• No more than 6 residents per toilet
•  
• No more than 7 residents per shower

5

• NEW BUILDINGS
•  
• The ratios are much more stringent
•  
• No more than 2 residents to a room
•  
• An average of no more than 1.5 residents per room
•  
• No more than 3 residents per toilet
•  
• No more than 4 residents per shower

6

• DIFFERENT SPACE AND PRIVACY REQUIREMENTS
•  
•  
• DIFFERENT RATES OF ACCOMMODATION CHARGE

7

• TO MEET 2008 STANDARDS
•  
• REWARD THOSE WHO ALREADY MEET
•  
• PROVIDE INCENTIVES TO MEET BEFORE 2008

8

• BUILDING COST OF 22 BED
• HIGH CARE EXTENSION
•  
• TOTAL BUILDING COST 1,857,000
• LAND COST 948,000
•  
• BUILDING COST PER SINGLE ROOM (18)
  89,000
•  
• BUILDING COST PER BED IN DOUBLE ROOM
  63,000
•  
• LAND AND BUILDING PER SINGLE ROOM
  134,600
•  
• LAND AND BUILDING PER BED IN DOUBLE ROOM
  95,400

9

• OPERATING COSTS PER BED PER DAY
•  
• OLD FACILITY NEW FACILITY
•  
• Staff cost 100.30 125.50
• Resident and Food cost 6.10 4.65
•   
• Office and Admin cost 7.25 8.20
•  
• TOTAL OPERATING COSTS 113.65 138.35

10

• ACCOMMODATION COSTS
•  
• OLD FACILITY NEW FACILITY
•  
• Accommodation cost 8.55 15.50
•  
• Rent at 10 of value or cost 10.65
  25.00
•  
• TOTAL ACCOMMODATION COST 19.20 40.50

11

• VARIATION IN COSTS OF NEW VERSUS OLD
•   
• OLD FACILITY NEW
  FACILITY
•  
• Operating Costs 113.65 138.35
•  
• Accommodation Costs
  19.20 40.50
•  
• Total Costs 132.85 178.85
•   
• VARIATION IN COSTS 46.00
•  
• Would be higher with more single rooms

12

• SELL HOUSE FOR 200,000
•  
• Income at 5 10,000 per annum 27.40 per
  day
•  
• SELL HOUSE FOR 400,000
•  
• Income at 5 20,000 per annum 54.80 per
  day

13

• CONCESSIONAL RESIDENT FEE
•  
• IF 2008 COMPLIANT
•   
• EXISTING BUILDING 30.00 per day
•  
• NEW BUILDING 40.00 per day

14

• CERTIFICATION SCORES
•  
• gt 60 1
•  
• 60 70 10
• 70 80 25 35
•  
• 80 90 39
• 90 100 25 64

15

• SUMMARY
•  
• Facilities with Certification scores above 80
  charge up to 40.00 per day.
• Facilities with Certification scores above 90
  have no upper limit for the Accommodation Charge.
• Government should pay Concessional Resident Fee
  of 30.00 per day to those Facilities that meet
  existing standards for 2008.
• Government should pay Concessional Resident Fee
  of 40.00 per day to those Facilities that meet
  new standards for 2008.
• Families should be able to pay Accommodation
  Charge for their parents (residents).