Asset management planning for the aged care sector can be challenging and complex, due to the medical nature of some equipment, 24/7 operations, and safety constraints which must not be overlooked. Let’s take a look at what Aged Care Facilities need to consider before entering into asset audits or asset management planning, and how the team at MDFM can help.

The NSW Retirement Villages Act 1999 and the Retirement Villages Regulation 2017 has shone a light on the importance of effective AMP and the dangers of not complying, therefore many aged care and retirement living operators have recently made AMP their priority.

What does Aged care asset management planning include?

The planning process for an aged care AMP involves the strategic management of physical and financial assets, and plays a crucial role in ensuring that older residents receive the best possible care and living conditions – i.e as much like their own home as possible.

Firstly a comprehensive inventory is established to understand what is available and what may need upgrading or replacement. MDFM undertakes a thorough assessment of the existing assets, including the buildings, fixtures and fittings, infrastructure, and plant and equipment. 

Once the assets are assessed, a long-term strategic plan is developed. This plan takes into consideration the current and future needs of the residents and staff, regulatory requirements, and budget constraints. It outlines how assets will be maintained, renovated, or expanded to accommodate the changing demands of the ageing population. One critical aspect of aged care asset management planning is ensuring the safety and well-being of residents. Adequate facilities and equipment must be in place to provide a comfortable and secure environment for older people. Regular maintenance and upgrades are essential to prevent accidents and ensure a high standard of living.

The core objective of aged care asset management planning is to optimise the allocation and utilisation of resources to optimise the life of your assets and ensure a high quality living environment for your residents.  Financial sustainability is a major consideration. Aged care providers need to balance their budgets while maintaining the quality of care. Asset management plans help organisations allocate resources efficiently, reducing waste and unnecessary expenses.

Our Step by Step Process to implement an asset management plan for our Aged Care clients:

1. Compile an asset register

Creating an asset register database provides a comprehensive list of every single asset you own; from care equipment, to fixed items in rooms, to the kitchen kettle, to flooring to HVAC. Anything that requires maintenance should be included in your asset register, as well as any assets with compliance or legislative requirements.

This provides a vital record to schedule routine maintenance, respond to reactive repairs and track assets that are coming up for replacement, and provides invaluable data for future purchasing and life cycle decisions. MDFM works with your Aged Care Facility Management team to implement, manage and maintain Asset Registers and AMPs. From onsite asset tagging and data capture, to a compliant asset management plan, we can assist you with every step of what can sometimes be a long and complicated process.

2. Perform a property assessment and life-cycle report

MDFM’s approach towards this is well-rounded and caters to the facility’s every need. Our experienced project managers inspect each facility to provide an assessment of the current state. Major items are visually inspected to provide an expected remaining life and a forecast for any significant maintenance or refurbishment that may be required in the near future.

The results of the assessment are reviewed in consultation with the provider to create the lifecycle report. There is no point spending significant capital on replacing a roof if the plan for that building is to be demolished in the next 5 years. The property assessment and life-cycle report will then inform the strategic asset management plan for the organisation.

3. Create an asset maintenance schedule

Our years of experience in AMP has proven that replacing items only when they break is costly. An asset register that has been correctly set up in a CMMS with life-cycle tracking and maintenance history allows you to plan their maintenance, so you can improve performance and return on investment across all of your assets.

Once you understand the status of your building and assets and have an overall asset strategy, a maintenance schedule can be developed. Your asset register should be set up in a Computerised Maintenance Management System (CMMS) to allow maintenance works to be proactively scheduled for each asset, and reactive requests raised and resolved. MDFM selects a software provider that matches the needs and size of your facility.

Over time this data can provide valuable insights for your facility and help you improve asset management activities such as life-cycling and replacement planning, reducing breakdowns, tracking costs, and improving budgets.

To help facilities navigate through these regulations, MDFM can also assist with all aspects of maintenance as well as making sure that your facility remains compliant. This means that your staff can be more focused on their core roles and that your facility will always be audit-ready. Contact MDFM today.

How to integrate your Asset Management Plan into all levels of your organisation

When you embed your AMP at all levels, your facility will improve its operational efficiency, minimise risks, and ultimately provide better care and services to your residents while ensuring the long-term sustainability of your assets. At this time you should also consider how your AMP works with all areas of your business operations, such as Data Management, Budget Integration, Regular Reviews, Stakeholder Engagement, Compliance and Regulations and Continuous Improvement.

How to integrate your AMP into your Aged Care Organisation:

Leadership Commitment – Always start at the top. Senior management must demonstrate a commitment to asset management and allocate the required resources. This will set the tone for the organisation’s approach towards asset management.

Access to expertise – For your AMP to succeed, both your AMP and the CMMS need to be driven by an expert who not only understands asset management, but also understands the intricacies of aged care and your individual facilities. MDFM strongly recommends outsourcing this role to our expert team ongoing. Speak to MDFM today about resourcing your CMMS manager.

Ongoing Training – Conduct adequate training sessions and workshops for staff at all levels to help raise awareness about the significance of asset management. It is vital that all staff members understand their roles and responsibilities in its implementation.

Find out how our team at MDFM can help streamline your processes, by booking in a no obligation phone call. Head to the MDFM Contact page now.