This was a key message from Pioneer House when delivering its 2014 Annual Report recently.

Pioneer House had an income of about $6.08 million during the 2013-14 financial year and in his treasurer’s report, director John Droll said a profit of $74,188 was primarily due to a “stringent management of our expenses.” 

“Most controllable major expenses have been reduced this year,” he said.

“We anticipate that our income...will dramatically increase next year due to changes that we are making to resident care assessment and a resulting substantial increase in government subsidies.”

Pioneer House chief executive and director of nursing, Diana Newman, said the aged care facility experienced several challenges over the past 12 months including new legislation on accommodation pricing as well as seeing no increase in some subsidies. She anticipates improvements in these areas by the end of the next financial year.

One challenge arising from the federal government’s Living Longer Living Better package is whether payments by residents will continue to be received in a lump sum or by daily accommodation payments, or both. This effects Pioneer House with cash flow and management of capital.

The CEO described the new legislation as “the biggest changes in aged care since the introduction of the Aged Care Act in 1997.”

“Adapting to the new accommodation pricing arrangements will need careful monitoring to ensure we comply with the legislation and maintain a strong fiscal climate,” Mrs Newman said in her report.

She said as more people delay entry into residential aged care tied with an increase in ‘user pays’ options, it would be up to Pioneer House to assist the community with more information and reassurance.        

“We are in a strong position, backed by a board that has a wealth of business experience and is financially astute. We are also supported by a good management team who show great dedication and commitment,” she said.

Pioneer House chairman, Garry Thompson, said management and staff had responded positively to the changes and Pioneer House was “on track for a very successful year ahead.”

He said looking ahead Pioneer House was well equipped for high care cover, especially at a time when dementia was leading a growth pattern of residents entering aged care.

“There is a bright future for aged care in Mudgee,” Mr Thompson said.

In his report Mr Thompson spoke about several initiatives the facility had taken on board including solar power installation, a meals and kitchen review, and several other upgraded facilities during the year.

He also paid tribute to the Mudgee community for their exceptional fundraising support.