Thread by @mrsalimiftari

Government released its draft National strategy for the Care and Support sector today. I haven’t read it in full detail, but credit where it’s due - really promising to see the focus on some key issues impacting the sector. Here are my early thoughts. #auspol #ausecon

https://twitter.com/pmc_gov_au/status/1662565894575341572

A driver of this work is the persistent issues impacting supply of labour. Challenges at the intersection of the labour market and care economy are well known. Consumers see it through cancelled appts, thinner rosters on Aged Care sites and difficulty confirming services

Longterm scarring of the care workforce due to pay, recognition and nature of work is impacting the ability of providers to access labour resources. This is no longer an issue in regional and remote areas, but one across geographies and cohorts.

The strategy discusses the employee experience, and provides insights on better job design. It acknowledges that workers are burnt out by a range of hazards. Equipping providers with tools to clarify role responsibilities, set up clearer progression pathways…

and increase worker utilisation on direct care delivery may go some way to reducing worker burnout and improving the attractiveness of care work, but won’t be enough to increase supply of workers at the scale.

Part 3 is what I’m most excited about. The policy goal of sustainable, functioning markets is a worthy one; as it acknowledges the role of contestability and competition in improving service quality, encourage innovation, promote choice and drive downward pressure on prices.

It also provides a clear signpost that Gov is going to lean into markets even more to deliver key social services. This is ultimately a good thing for consumers, the community and economy. However, to achieve this, Gov needs to get serious on market stewardship.

Market Stewardship is a new(ish) concept for the Commonwealth. Government distributes significant amounts of money for care through public sector markets, but is still playing ‘catch up’ on setting the rules for engagement, role and responsibilities of various system agents and…

on signalling clear views on profitability, performance and outcomes. Challenges impacting the operation public service markets are not specific to the system they are supporting. Services are not delivered in isolation, and these markets are inextricably interrelated…

and Gov programs are, in effect, competing with each other to secure services for their target cohorts. The market stewardship strategy should therefore be coordinated and considerate of the impacts of policy/pricing decision for one section of the sector on others.

This way, the focus is on the way this single market operates, issues signals about good market behaviour and allows us to focus on achieving outcomes across the whole of life, and minimise the types of supply and demand risks that can impact effective service delivery.

That said, there are some welcome signals about alignment on price and regulation, which reflects sector feedback and could go some way to reducing service gaps.

It’s also good to see Government recognise the emergence of thin markets as a pressing policy challenge. The case for action is strong: thin markets (particularly for DVA services) are now becoming apparent in dense population areas and for some cohorts (CALD, First Nations etc).

And finally, profitability of providers is important. If we are to get serious about boosting supply and encouraging entry of new providers, Gov needs to signal what an acceptable margin is, and then price services accordingly.

Profit is incentive to invest in services, renew assets and drive service quality improvements. If providers can’t make a profit, and Gov doesn’t fill the gap, services will exit.

Government is consulting on the strategy until 26 June. I’ll be having my say because this is a pivotal piece of work that impacts the whole country and economy - so have your say too! #auspol #ausecon #NDIS #agedcare #socialpolicy

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