The Business of Providing Better Care

The not-for-profit sector is big business and, as Ken Barber demonstrates, it's attracting big business executives with the talent and sophistication many private businesses would envy.

Ken Barber is the CEO of Anglican Retirement Villages (ARV) - one of Sydney's largest aged care providers, but also one of Sydney's largest creators of new seniors' living communities.

He and many of his fellow executives left behind the corporate world to make a difference in their local world, something they are discovering is just as exciting and far more satisfying. Ken's career commenced with a 13-year stint as a chartered accountant at PricewaterhouseCoopers, after which he joined Commonwealth Industrial Gas (CIG, now BOC) in various finance roles.

What was his catalyst for carer change?

Ken: "When CIG was sold to the British, I had to decide whether I would move to England or stay here. I wanted my children to grow up in Australia and I also wanted to do something more in the community. Around that time, I was approached by the then volunteer chairman of ARV, a not-for-profit group. It was a lot less pay, but with the potential for a lot more satisfaction. I can now report that my colleagues and I are happy to earn less knowing we achieve more."

Ken joined as chief financial officer and after four years moved up to CEO. He has surrounded himself with other experienced executives who have made the same career transition. They have big plans plus some big challenges, given the funding of aged care and the community mission of their employer.

ARV is the Christian-based village and aged care arm of the Anglican Diocese of Sydney. With 4,000 residents and a further 2,000 clients receiving regular community care, ARV is a significant contributor to the quality of life for the ageing population of Sydney, irrespective of religious persuasion. With almost 2,000 employees and 24 / 7 operations caring for the frail, elderly and vulnerable, it is both challenging and dynamic compared to Ken's old world of industrial gases.

Ken and his team have over $1 billion in development in Sydney alone. There are 44 facilities in the metropolitan area under constant renovation, plus four development projects with a combined total of over 700 village villas or apartments and 400 aged care beds. This comes off the back of having just completed new villages at Glenhaven, Taren Point, Kirrawee, Castle Hill and Dapto. It's a sizeable business in anyone's language, especially in a relatively small geographic zone where there are many other competitors building new villages.

Should a not-for-profit organisation be building in premier suburbs like Warriewood and maximising their dollar return? Ken Barber believes the answer to that is ‘yes'. "I see no problem with us striving for growth and making money out of the sale of our top-end retirement village units. We may be ‘not-for-profit,' but that does not mean we are ‘for loss.' The surplus
we make from our retirement villages is then reinvested into our operations to provide better care for all our residents and clients and to provide for those who could not normally afford aged care services."

"In fact, I believe we provide a better service than the private sector. It just stands to reason that they correctly have to generate profit and dividends for shareholders. We take that money and plough it back into our services. But as part of our mission, we also give away about five percent of our retirement village accommodation and provide concessional rates for up to 40 percent or more of our residents in residential care. The bulk of our units are still very affordable by Sydney standards. If people can afford to pay full freight I think they should, and those that can't we help. Our philosophy is to break even in our hostels and nursing homes. The government helps us to only break even by under funding us."

"I am often asked why the church is in the business of retirement villages and aged care. Look at the Bible - it says we are required to look after our senior citizens. I believe that a country that doesn't look after its elderly is on the rocks. And that is all senior citizens."

"ARV doesn't discriminate on religious grounds. Only about one third of our residents are Anglicans, and only about half of our residents are practicing Christians. Our attitude is if you have an existing faith of whatever persuasion we will do everything we can to ensure it is respected."

"We are living out our vision to Create Communities of Christian Care - we have $1 billion in developments at hand. We have developments in Bulli, Warriewood, Penrith and Victoria Park.

And we have an ongoing redevelopment program. At Castle Hill, for instance, we are rebuilding a 238-bed facility at a cost of $57 million with no funding from the Government. All up, we have 17 aged care facilities and we will be renewing all of them over time." "Our core mantra is to be at the top and at the forefront of all things aged care - new technology and new concepts.

We keep looking for the best way to do things, both here and overseas. Our new aged care facilities are made up of clusters of 17 units, each with their own bathroom and their own front doors. They are like their own street of 17 homes, they even have their own postbox. This allows couples to stay together in care with the intimacy of a small group of people around them plus dedicated staff, while delivering greater efficiencies in our provision of that care. We are keen to give the best quality of life possible."

"Our funding is increasing at two percent while our staffing costs are rising by about four percent per annum. The government is either going to have to fund us more or allow us to charge more. Capital funding is also a problem because we can‘t charge a bond moving into a nursing home - the Howard Government tried this in 1997 but was forced because of policies to pull back."

"Staffing is also a challenge; it is so hard to get good people. We pay seven percent above the award which comes straight out of our surplus for funding services, but we have to be fair in what we pay our staff."

"We need younger people to join the industry - the average age of our nursing staff is 54. So we have to be smarter and help them upgrade their skills and we need to assist them in areas like decreasing the paperwork we as an industry are burdened with.

We need to look at efficiencies. This is a complex business and it is a business that deals in people's lives. What we are doing is just the beginning."

ARV Services
• Residential Aged Care: Low Care (Hostel), High Care (Nursing Home), Dementia Specific Care
• Retirement Villages / Independent Living
• Community Care / Independent Living
• Community Care: Community Aged Care Packages, National Respite for Carers Program, Transitional Rehabilitation Aged Care Service, Extended Aged Care in the Home, Veteran's Home Care Services, Assistance with Care & Housing for the Aged, Home Support Services
• Support Services: Allied Health Clinic, Hydrotherapy Pool, Food Services, Laundry Services

Four new Sydney villages
Buli: 230 vilas/apartments 68 care beds
Victoria Park (Zetland): 150 vilas/apartments 136 care beds
Penrith: 80 vilas/apartments 102 care beds
Warriewood: 260 vilas/apartments 119 care beds

The Business of Providing Better Care

What was his catalyst for carer change?

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