6 April 2023; 4pm
Yes – we looked at all sites. We are ceasing day services at Rosanna because this is the service generating the biggest loss. While being able to use the Rosanna building as a base for our new services is an opportunity, doing so is an outcome of the decision to cease providing our least sustainable service.
By ceasing Day Services at Rosanna we will see a significant decrease in our losses, this is a major step in returning the organisation to a profit. However, it will not completely resolve all the losses we are making. That’s why we need to investigate new funding streams and services to assist us to become financially secure.
We are also committed to streamlining our service model, and investigating where we can find savings in administration. There will be further changes to the administrative structure this year.
In our deliberations, nothing has been off the table – including property sales and mergers. A property sale would also involve the cessation of a service and we would lose the ability to use that property to build alternative funding streams. In addition, a sale would merely postpone the need to take action for a few years, and wouldn’t actually solve our problem. A merger or takeover would mean we might lose our identity, or control over what decisions are made once the merger is complete.
23. Why are
70% of similar disability organisations have told NDIA they expect to make a loss, so those able to operate Day Services either look very different to Araluen or have other parts of their organisation able to subsidise areas which are making losses. Those which can cross-subsidise loss-making services include larger health organisations or ones which may have other completely unrelated revenue streams like gambling.
6 April 2023
22. Will there be a lot of double handling with a work force coordinator?
We do not anticipate there to be double handling as a result of the introduction of the workforce co-ordinator role. Managers will no longer be required to perform workforce co ordination tasks as part of their roles, and the practice leader (who currently perform workforce co-ordination tasks) roles have been made redundant.
21. Will there be enough jobs for Rosanna staff at other sites?
Yes – It is our aim to retain as many of our Rosanna team as we can, and all impacted permanent support workers at Rosanna have been offered places at other Day Services sites.
20. Can we stage a staggered exit for participants so staff can be relocated more effectively, and staff have some certainty about their next stages?
Araluen will not dictate specific exit dates for participants or rush them out of the organisation – each participant and family will make that decision independently. We have undertaken to provide day services at Rosanna until the end of the year to give people time to find alternatives supports and we will staff accordingly to meet that commitment. We are working with each staff member who has been impacted to try to accommodate their wishes and give surety. Staff relocations will be dependent on participants.
19. If we lose the revenue of 28 participants, aren’t we increasing instead of reducing our losses?
It costs Araluen more to support people under the day support worker (DSW) model than the set NDIS price allows us to bill. So, if we reduce the number of people we support via day services, we also reduce our financial loss. This is one of several measures we need to take if we are to achieve overall financial sustainability.
18. Are our current sites being used to their full capacity?
In terms of day services no they are not, and this is a deliberate decision. Intake to day services is grandfathered to stem some of the financial losses. Taking on more participants at a loss just because we have capacity only compounds our financial problems. We need time to make changes to our structure and services in a careful and responsible way then assess the outcomes.
17. Have we thought of reintroducing transport utilising our staff?
This is not something we plan to reintroduce, as this service was running at a loss. This was transitioned to a taxi service which is now running smoothly. Activity transport will remain, as this has been working well for us.
16. What part of the proposal is Araluen willing to negotiate on?
The decision to cease operation of Day Services at Rosanna has been made by Araluen’s Board and ELT in line with their responsibility to safeguard Araluen’s longevity and is not open to consultation. What we are consulting on is the changes to our organisational structure and feedback on how this change is to be implemented. Staff whose roles are directly impacted have discussed their circumstances and provided feedback on an individual basis with management and we will accommodate their preferences wherever it is possible to do so without impacting service quality.