Webinar briefs CHSP providers on mergers

Merging is among strategic responses for Commonwealth Home Support Program providers to consider in reaction to reforms, a recent webinar has heard.

Merging is among strategic responses for Commonwealth Home Support Program providers to consider in reaction to government reform, according to a recent webinar for CHSP providers.

The webinar – titled Be Prepared: Home care mergers in light of industry reform and consolidation – is an initiative of the Sector Support team at Hornsby Shire Council in Sydney with support from organisations who host sector support officers.

Held on 19 April, and available to watch now, the webinar canvasses big-picture drivers and forces and the need to consider where an organisation is at with its leadership, financial and people capability, quality, information technology and workforce.

While it primarily targets organisations delivering CHSP, the content is broadly applicable to all organisations delivering Australian Government-funded aged care services, said co-presenter Aaron Goldsworthy – senior consultant at Australian Strategic Services, which advises not-for-profit boards and executives.

Aaron Goldsworthy during the webinar for CHSP providers

Mr Goldsworthy told the online audience that strategic leadership is a key governance responsibility of directors and committee of management members.

“This includes monitoring and understanding current and emerging internal and external challenges and opportunities. Directors or committee of management members, chief executive officers and executive or senior teams need to understand where the big picture of aged care is at and where it is headed,” he told Community Care Review following the webinar.

“They also need to undertake an objective assessment of their organisation and what the big picture of aged care means going forward. Do they have the financial resources, people, structures and systems to undertake a transformation of their business model and operate in customer-driven, competitive marketplace?”

Fellow co-presenter Jonathan Teh – a principal at Russell Kennedy Lawyers – outlined a range of legislative changes impacting organisations delivering CHSP and the future Support at Home Program once it goes live.

“We are seeing increased regulation of aged care services delivery, including specific requirements about board composition, skills and advisory structures. These regulatory changes are just one aspect of a range of drivers informing directors about whether they should explore a merger,” he told CCR after the webinar.

Jonathan Teh during the webinar for CHSP services

Mr Teh provided participants with context of where mergers sat on the spectrum of relationships organisations might have. This spectrum considered:

  • informal referrals
  • formal networks or alliances
  • shared services or franchise models; and
  • mergers.

He also explored the key commercial terms of a shared services model. 

Mr Goldsworthy and Mr Teh both stressed the need for directors to have a clear picture of their organisation’s financial position in determining their organisation’s strategic development option. An organisation which is financially weak might struggle to build relationships and work with other organisations, including exploring mergers, providers heard.

It also outlined a nine-step process for organisations exploring a merger with another organisation. The key considerations included:

  • a documented process and timeframes
  • legal and financial due diligence at a minimum
  • ongoing communication and engagement with internal and external stakeholders throughout the process at appropriate points
  • the need for various approvals.

Key tips for preparing an organisation and its people to merge included the need to:

  • engage and educate directors, the CEO and senior team members on the aged care big picture
  • ensure there is a common understanding of objectives and whether there is an indicative case to merge
  • get “your house in order” and have key documents to hand
  • plan, involve advisors and communicate.

The sector support organisations involved in the webinar – which receive funding from the Department of Health and Aged Care – included Community Industry Group, Ethnic Communities’ Council of NSW, Macarthur Disability Services, Sector Support Central Coast, Social Futures, STARS and Your Side Australia.

Email Madeline Yan, Sector Support & Project Officer at Hornsby Shire Council, at myan@hornsby.nsw.gov.au to access the webinar recording and complementary resource pack.

Note: The webinar states the commencement of Support at Home is July 2024. As part of the budget announcements the Australian Government has moved the date to July 2025

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