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Accommodation payment plans in residential aged care: The impact of consumer choice
Author(s) -
Abiona Olukorede,
Yu Serena,
Woods Mike,
van Gool Kees
Publication year - 2020
Publication title -
australasian journal on ageing
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.63
H-Index - 34
eISSN - 1741-6612
pISSN - 1440-6381
DOI - 10.1111/ajag.12707
Subject(s) - accommodation , payment , renting , business , aged care , lump sum , consumer choice , public economics , marketing , actuarial science , economics , finance , nursing , medicine , psychology , neuroscience , political science , law
Objective To examine changes in accommodation payments to residential aged care facilities following the introduction of consumer choice reforms in 2014. These reforms have allowed residents to choose between making lump sum refundable deposits and/or rental‐style payments. Methods Quantitative analysis was undertaken for facility‐level quarterly data of 136 separate facilities, which were operated by six providers over the period under study. Results While the total pool of payments has grown strongly, consumers have increasingly favoured rental‐style payments over lump sum refundable deposits. Conclusion Consumer choice has changed the landscape of accommodation payment receipts in the provision of residential aged care services. Greater understanding is needed on how consumer preferences impact on the financial risk borne by providers and their ability to invest in future capacity.