Aged care asset management planning: Ensuring quality for older people

Asset management planning in the aged care sector can be a very tedious task with several sections to manoeuvre through strategically. It is a unique industry with distinctive features to property and operational constraints which must be understood. Having a trusted source to fall back on is essential.

Aged care asset management planning is a crucial component of providing high-quality care and support to our ageing population. This comprehensive process involves the strategic management of assets, both physical and financial, within facilities and organisations dedicated to caring for older people. It plays a pivotal role in ensuring that older individuals receive the best possible care and living conditions as they age.

All operators of NSW retirement villages must prepare and keep up to date an asset management plan in compliance with the Retirement Villages Act 1999 and the Retirement Villages Regulation 2017. Despite some criticisms of the legislation, it has certainly shone a light on the importance of effective asset management planning and many aged care and retirement living operators are making it their priority.

The core objective of aged care asset management planning is to optimise the allocation and utilisation of resources to optimise the life of your assets and ensure a high quality living environment for your residents. This process begins with a thorough assessment of the existing assets, including the buildings, fixtures and fittings, infrastructure, and plant and equipment. A comprehensive inventory is established to understand what is available and what may need upgrading or replacement.

Once the assets are assessed, a long-term strategic plan is developed. This plan takes into consideration the current and future needs of the residents and staff, regulatory requirements, and budget constraints. It outlines how assets will be maintained, renovated, or expanded to accommodate the changing demands of the ageing population.

One critical aspect of aged care asset management planning is ensuring the safety and well-being of residents. Adequate facilities and equipment must be in place to provide a comfortable and secure environment for older people. Regular maintenance and upgrades are essential to prevent accidents and ensure a high standard of living.

Financial sustainability is a major consideration. Aged care providers need to balance their budgets while maintaining the quality of care. Asset management plans help organisations allocate resources efficiently, reducing waste and unnecessary expenses.

MDFM are Australia’s only facilities management company that operates exclusively in the aged care and retirement living industry. MDFM are well nuanced with information about assets and their criticality to the operation of an aged care facility. Not only do they have the added advantage of knowing some of the best suppliers and contractors in this industry, they also know how best to manage them to get top quality results for their clients.

We asked the team at MDFM for some tips on the process they follow to implement an asset management plan for their clients, and here is what they said.

Compile an asset register

Creating an asset register database provides a comprehensive list of all the assets owned and maintained by an aged care provider or Retirement Village operator.

Your asset and maintenance management system should be based on an asset register containing every item in your facility; from care equipment to HVAC. Anything that requires maintenance should be itemised in your asset register, as well as any assets with compliance or legislative requirements.

This provides a vital record to schedule routine maintenance, respond to reactive repairs and track assets that are coming up for replacement. A comprehensive asset register will also provide you with invaluable data for future purchasing and lifecycle decision.

MDFM works with your Aged Care Facility Management team to implement, manage and maintain Asset Registers and Asset Management Plans, specialising in the aged care sector. From onsite asset tagging and data capture, to a compliant asset management plan, they can assist you with every step of what can sometimes be a long and complicated process.

Perform a property assessment and life-cycle report

MDFM’s approach towards this is well-rounded and caters to the facility’s every need. Their experienced project managers inspect each facility to provide an assessment of the current state. Major items are visually inspected to provide an expected remaining life and a forecast for any significant maintenance or refurbishment that may be required in the near future.

The results of the assessment are reviewed in consultation with the provider to create the lifecycle report. There is no point spending significant capital on replacing a roof if the plan for that building is to be demolished in the next 5 years. The property assessment and life-cycle report will then inform the strategic asset management plan for the organisation.

Create an asset maintenance schedule

Once you understand the status of your building and assets, and have developed your strategy, a maintenance schedule can then be developed. The asset register should be set up in a Computerised Maintenance Management System (CMMS) to allow maintenance works to be proactively scheduled for each asset, and reactive requests raised and resolved.

With decades of experience in managing maintenance for aged care facilities, they streamline your facility’s onsite maintenance process, which helps to improve productivity, documentation and budgeting. MDFM uses a range of software providers depending on the needs and size of your facility, including MEX, FM Clarity, Urbanise, Asset Journey, FM Xpert, FMI Works and Asset Future.

Repairing or replacing items only when they break can become expensive. An asset register that has been correctly set up in a CMMS with life-cycle tracking and maintenance history allows you to plan in advance, so you can improve the performance and return on investment across all of your aged care property’s assets.

Over time this data can provide valuable insights to the aged care facility and help to improve asset management including life-cycling and replacement planning, track costs, improve budgeting and reduce breakdowns.

Asset management planning is closely tied to compliance with regulations and industry standards. Facilities that adhere to these standards are better positioned to receive funding and maintain their reputation for providing quality care.

To help facilities navigate through these regulations, MDFM can also assist with all aspects of maintenance as well as making sure that your facility remains compliant. This means that your staff can be more focused on their core roles and that your facility will always be audit-ready.

Document policy and methodology statements for your AMP

Documenting clear and well-defined policy and methodology statements within your AMP is essential for various reasons.

First and foremost, policy statements establish the overarching principles and objectives that guide asset management practices. These policies help align the management of assets with organisational goals, regulatory requirements, and community expectations.

For instance, policies may dictate a commitment to sustainability, safety, or cost-effectiveness. Methodology statements, on the other hand, provide the practical framework for implementing these policies. They detail the procedures, processes, and tools used in asset management. This includes asset inventory and assessment methods, maintenance strategies, risk management approaches, and financial planning guidelines.

Clear documentation of policies and methodologies enhances transparency and accountability. It enables stakeholders, including government bodies, investors and the public, to understand how assets are managed and how decisions are made.

Moreover, various asset management standards and guidelines, such as ISO 55000, require organisations to articulate their policies and methodologies clearly in their AMPs. Compliance with these standards can lead to improved asset performance, reduced risks, and better financial outcomes.

Embed AMP at all levels of the organisation

By embedding an AMP into the fabric of an aged care organisation at all levels, facilities can enhance operational efficiency, minimise risks, and ultimately provide better care and services to their residents while ensuring the long-term sustainability of their assets.

There are several other factors that need to be considered when implementing AMPs at various levels in an aged care facility. These can include Data Management, Budget Integration, Regular Reviews, Stakeholder Engagement, Compliance and Regulations and Continuous Improvement among others.

Some of the key areas that require integration are:

Leadership Commitment – It’s best to start at the top. Senior management must demonstrate a commitment to asset management and allocate an appropriate amount of resources. This will set the tone for the organisation’s approach towards asset management.

Training and Awareness – Conducting adequate training sessions and workshops for staff at all levels will help raise awareness about the significance of asset management. It is crucial to make sure all staff members understand their roles and responsibilities in its implementation.

Access to expertise – Once your asst management plan is in place, it is important not to underestimate the magnitude of effectively maintaining it. To succeed, your AMP and CMMS need to be driven by an expert who not only understands asset management, but also understands the intricacies of aged care and your individual facilities. 

MDFM pride themselves on their approachable nature and are keen to provide your facility with their knowledge and expertise to guide you through implementation and provide ongoing management support and are open to an initial no obligation chat with providers.

Find out how MDFM can help streamline processes at your facility at www.mdfm.com.au and get in touch with their friendly team to set up an appointment.