The Challenge
A provincial government’s funding approach and model for long-term care was facing challenges, including rising costs, equity and quality pressures as well as concerns about a lack of transparency needed to hold providers accountable for high-quality and financially sustainable outcomes.
Long-term care is a highly complex healthcare sector that comprises a combination of funding models and a mix of public service providers, privately-owned not-for-profit operators and private for-profit long-term care facilities.
Our Approach
In 2021, the province engaged Deetken to help explore alternatives to funding long-term care, including by developing a model and a report on the implications of transforming to a new funding model framework for long-term care to make it more consistent, transparent, sustainable, and equitable.
Deetken reviewed a broad range of LTC funding models from across the province to develop a detailed cost model and then conducted an in-depth analysis of the operational expenditures of over 260 LTC facilities to identify variances based on business model, geographic location, economies of scale and cost and compensation model. We then conducted advanced modeling to forecast future funding needs.
We conducted detailed data analysis to build out robust assumptions for costs across each envelope (including, Direct Care Staff, Surgical & Medical Supplies, Raw Food, Food Services, Laundry Services, Housekeeping Services, Administration, Facility Services) and then developed a bottom-up funding model framework/calculator to align with the province’s new quality framework. We also investigated the cost impacts, by cost envelope, versus the status quo to understand how changes to policy would impact funding amounts for each LTC operator.
Outcome
The outcome of this project was a detailed report summarizing our findings and a site-by-site analysis. Our report helped inform the province’s decision-making regarding the adoption of a new funding model framework and was crucial in defining a standardized and consistent approach to funding long-term care.
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