2 comparable rooms, 1 very big price difference. Aged Care Ready explains why it’s important to shop around.
Our Aged Care Coordinator and Associate Director, Naomi Anderson, has recently toured more than 10 facilities in search of a permanent place for a client to call home.
Prior to the search, Naomi liaised with the clients financial planner and determined the budget would be around the $600,000 mark (Refundable Accommodation Payment). This being the top of her end of the budget, Extra Services fees could not be afforded.
Ms Anderson’s goal was to find something cheaper than this, so the extra little luxuries could be afforded.
“Given the geographic area we were looking in was in an up market area, this one was going to be a bit of a challenge,” identified Naomi.
“Refundable Accommodation Deposits (RAD) are determined by the facility, based on the quality, location and facilities. Generally speaking, facilities in the same suburb have similar RAD prices,”
“As always, my research phase begins online. I look at all facilities in the region, sort by price, reputation, audit results and then availability. Interestingly, I found some significant differences in RAD’s, and also Extra Services fees. I thought I’d dig a little deeper as this was strange.”
Naomi shortlisted 11 facilities and booked tours. This is a time-consuming and overwhelming process for families with loved ones who need care. Naomi does the hard work for you during this process.
“Touring the facilities, I completed my own checklists (as I usually do) to determine that 1) the facility meets my clients needs, and also 2) that the facility is up to standard. Whilst doing this, I took notes to try and determine why there was such a difference in the RAD’s,” Naomi says.
“Interestingly, I found two comparable rooms, in the same suburb, at a difference of $350,000! In fact, the cheaper room was slightly bigger, had a better orientation and the ensuite was recently renovated. The more expensive room was slightly smaller, and more dated than the other.”
The only difference that Naomi could find?
One room was $350,000, and the other room was $700,000.
“Extra services put aside, both facilities claim to provide the same care, similar lifestyle activities, are in the same suburb and the buildings are of a similar age,” explains Anderson.
“Given my role in reducing overwhelm for our clients and their families, I also bear the brunt of the ‘sales tactics’ of any given facility. If hadn’t of known any better, I would’ve been sold on the $700,000 room,” she warns.
There’s definitely options out there.
It is crucial to not ever be pressured into making a decision on the spot.
Shop around, compare facilities and don’t be scared to ask for a better price and then use that as leverage.
Aged Care Ready offer professional assistance in one of life’s biggest emotional and financial undertaking.
Call the team today on 1300 023 589 and let us help you make a decision you won’t regret.