Written by Rob Covino, Co-Founder and Partner, Mirus Australia for the Hello Leaders Summer-Autumn Edition.
The aged care sector is undergoing a significant shift where care minutes and funding are intrinsically linked, challenging conventional revenue-maximising methods from our past.
My journey through the tech industry, including a stint at IBM (SPSS) and collaboration with the Major League Baseball team Oakland Athletics, has provided me with invaluable insights, while my involvement in the ‘Moneyball’ phenomenon in baseball particularly, shaped my perspective on the aged care sector’s transformation, especially in light of the Australian National Aged Care Classification (AN-ACC) model introduced just a year ago.
The ‘Moneyball’ revolution in baseball, underpinned by empirical analysis of player performance, resonates deeply with the current situation in the aged care sector. Billy Beane’s famous quote, “We need to change the way we think about the game,” mirrors the imperative need for a paradigm shift in how we approach aged care in the era of AN-ACC.
To navigate this landscape successfully, a fundamental reorientation toward a data-driven approach is imperative, placing a strong emphasis on workforce management and AN-ACC metrics.
Adopting a ‘Moneyball’ approach involves restructuring business units typically operating in silos, fostering collaboration among admissions, rostering, and funding teams, and leveraging active Medicare care claim and “Off-claim” AN-ACC data to craft informed business scenarios. This empowers providers to control AN-ACC outcomes and operational planning, steering the course of care delivery.
Let’s delve into three critical AN-ACC metrics that are pivotal in this transformation:
1. AN-ACC Forecasted Assignments % (AFA):
The AFA metric, measuring the percentage of consumers with forecasted AN-ACC classifications at a service, allows for accurate prediction of care requirements. Aiming for an AFA close to 100% necessitates a ‘Moneyball’ approach that utilises data analytics to refine facility level scenario planning capabilities.
Through empirical data analysis across services, providers can optimise resource allocation and care delivery, ensuring precise forecasts in line with their mandated care minute targets.
2. Predicted vs. Achieved Rate % (PvAR):
The PvAR metric gauges the accuracy of a service’s AN-ACC predictions in alignment with the outcomes assigned by Assessment Management Organisations (AMOs). A high PvAR signifies a facility’s ability to effectively align their AN-ACC classes with actual care needs.
Committing to data-driven decision-making requires a high PvAR, enabling a confidence level percentage that can be applied to the modelling of forward-looking AN-ACC case mix scenarios with a high degree of accuracy, thus gaining control over AN-ACC.
3. Entitlement Efficiency Rate % (EER):
The EER measures the achieved margin on government-funded care entitlements, showcasing the efficiency of financial resource management concerning direct care time. Maximising the EER relies on a strong PvAR, cost-effective roster delivery, and strategic resource allocation.
It aims to deliver exceptional care within budgetary constraints, maximising financial efficiency for both the provider and the Australian taxpayer who funds our system.
In conclusion, ‘Moneyball,’ which transformed baseball, offers a guiding light for aged care within the context of the AN-ACC model. Embracing these new metrics and adopting a data-driven approach allows providers to take control of operations and compliance.
Just as ‘Moneyball’ revolutionised baseball and many other sporting codes, the aged care sector now has the opportunity to reshape its landscape for the better.
Leveraging the power of data analytics, fostering collaboration across business units, and aligning resources with care requirements ensures improved care quality, efficient workforce management, and financial prudence. Ultimately, this transformation benefits both providers and most importantly, the residents for whom care is being provided.
Find out how Mirus Australia can assist your organisation by visiting mirusaustralia.com.
