Navigating the maze: Finding Aged Care without conflicts of interest
Key Points
In 21-22 there were 69,000 admissions to full time residential aged care, and 82,000 admissions to respite residential aged care.
As at 30 June 2022, the average occupancy across all residential aged care places was 86%
To improve occupancy rates, some residential aged care providers are advertising and promoting, as well as paying introduction fees to advisors and agencies to get an edge in attracting new residents.
Also - financial planners may face a conflict of interest when advising clients on potential aged care accommodation cost arrangements that may reduce clients investments and ongoing financial advice fees.
These, and other conflicts of interest are worth recognising as part of a vital process of identifying the right residential aged care provider for a loved one.
An understanding of the potential for conflict of interest is an important part of being vigilant in the search for an aged care home.
The unreliable world of internet searches
A simple search like "aged care homes near me" can lead you down a rabbit hole of advertisements and misleading information. With online platforms prioritizing revenue streams over user needs, it's no wonder we're often left sifting through biased results.
The illusion of specialist listing services
Online guides might seem helpful, but their priority is often skewed. Many sites rank providers based on payment rather than quality. Words like "sponsored", "premium", and "platinum" are red flags that indicate placements bought by providers, not earned by merit.
These services are nothing more than classifieds, and should not be relied upon as a measure of quality.
The true cost of “Free” Aged Care placement
If a placement fee is industry standard, then the industry has a problem.
When services are "free" to you, they often come with hidden agendas.
If providers offer financial incentives for placements, guess who gets the recommendation?
Ensure your interests are the priority by considering paid placement services. If you are not paying for the help - somebody else is, and this may not be in your best interests.
Understanding financial Advice & potential conflicts
The decision surrounding a Refundable Accommodation Deposit (RAD) can have financial repercussions. For example, from 1 October 2023, not opting for RAD attracts an interest rate of 8.15%. If a financial advisor suggests keeping funds invested rather than using them for RAD, their reasons should be transparent and justifiable. It's essential to discern whether the advice is genuinely in your best interest or geared towards maintaining the advisor's ongoing annual service fees.
Be wary of referrals
While many aged care homes provide a list of recommended financial advisors, be mindful of potential underlying relationships.
Remember, placements on such lists can be influenced by mutual benefits rather than genuine endorsements.
A government resource worth exploring
The government Aged Care Star rating system, introduced in December 2022, is a beacon of unbiased information. Updated quarterly, it offers insights into more than 2,600 providers, helping Australians gauge the quality of aged care in their vicinity.
Conclusion
The journey to securing the right aged care home is intricate. By staying informed and cautious of potential conflicts, you can navigate this journey with your best interests at heart.