The Governance Institute of Australia has produced a guide for board members of aged care providers in a time of upheaval and change for the sector.

The institute says boards of aged care providers will be subject to increasing scrutiny and pressure as the forces of an ageing demographic come head to head with the need for sustainability and affordability.

It also notes that the aged care sector, which will be the subject of a recently-announced royal commission, is being buffeted by wide ranging reform and the shift to consumer directed care.

“Boards will need to ensure that they are capable of making informed and effective decisions and have in place governance frameworks to enable this,” former president Andrew Horne writes in the guide.

The comprehensive 25-page Adding value to governance in aged care guide includes chapters on the role of directors and board members, the relationship between board and management, risk management, interacting with stakeholders and the unique challenges of governance in the aged care sector.

It explores all the models of care including community care, home care and the residential sector as well transformational leadership, compliance,  financial issues under the move to market based system.

It also provides advice for those taking up a position on the board of an aged care provider as well as pointing to what boards should consider when inviting a new member onboard.

“Reading this guidance should be mandatory for all new and existing board members of aged care providers in order to comply with their obligations and understand how they can best add value to the governance of their organisations,” Mr Horne says.

Adding value to governance in aged care: A practical guide for any potential or current member of a board of an aged care provider can be downloaded here.

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