A ZERO BASED BUDGET BUSINESS PROPOSAL

Dr. Tauseefullah Akhund M.B.B.S, MPH (Sydney), (Australia)

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INTRODUCTION

(A): Rationale

The older peoples need help that’s why people start a new business to build Nursing Homes. Unfortunately, the total numbers of Nursing Homes in Australia are not sufficient to fulfil the basic needs of Aged people. In this case, it is very clear to see a business opportunity to build a Nursing Home, through which they not only help the older people but this is also the best source of earning money. The time is the main factor, which makes the human beings old. The basic cause of ageing is the body cells which becomes  exhausted after a certain period. It is very difficult for the older people to look after him/herself and to do personal care such as bath, toileting, buying foodstuff, cooking, washing etc.

Because of these factors the older peoples needs help from someone else to do their work. They are totally dependant on other peoples to continue their life. According to the most recent figures published by Australian Bureau Statistics (2001), the Australian life expectancy is 75.9 years for males and 81.5 years for females during 1996-98. Moreover, the new technology and medicine in medical fields are developed to cure major illness that causes death, which increases the Australian life expectancy.

(B): Evidence of Needs

According to the Australian Bureau of Statistics as at 30th-June’2000 there were 3,006 occupied aged care homes in Australia, providing a total of 141,162 places. However, based on Australian Bureau of Statistics population estimates released in December 2000, the ratio of residential aged care places per 1,000 persons aged 70 years and over was 94.5 places. That is below the target of Commonwealth Government, which set to 100 places per 1,000 persons aged 70 years and above. According to the Australian Institute of Health and Welfare in the year 2001, the characteristics of Australian older people who lives in the nursing homes was:

• 65% of new admitted residents aged were 80 and over (71% of females—56% of males), which means they have a high need of nursing homes for aged peoples.

• Resident dependencies levels are about 62% with high-care categories (Resident

Classification Scale 1-4) and 38% are low care categories (Resident Classification Scale 5- 8) at 2000.

• Place-day and occupancy rate during the 12 months period of 2000 is 49.1 million place-days, which is a high figure of occupancy rate. According to Classification Principles Act 1997, the classifications levels are indicated on a numerical scale from the lowest-level dependency to the highest-level dependency. The dependency levels of new admitted permanent residents during the period from 2000 suggests that there is a continuing shift towards a higher proportion of people in residential aged care at high levels in the future. About 63% of newly admitted permanent residents were classified as high care categories and just 37% as low care. Aged peoples are increasing rapidly in Australia. According to the Australian Bureau of Statistics (2001), total Australian population of 65 years and over are 2,360,153, from eight states and territories. New South Wales has the biggest aged population with 828,807 older persons or 35%of total population. Based upon this survey by the Aged and Community Services Association found that 20,000 people in NSW are waiting an unacceptably long time for a nursing home.

(C): Description of Proposed Services

Based on Australian Institute of Health and Welfare research therefore this proposal is proposed to build a high care nursing home in the New South Wales. The capacity is 18 beds for 18 residents. Based on Accreditation Grant Principles 1999, every resident need at least 20 sq. meters for their bedroom and en-suite, 3 sq meters for lounge area and 2 sq meters for dining space. For 18-bed facility this equates to 18 x 25 = 450 sq meters. Kitchens, laundries, staff rooms, dirty and clean utility rooms and other ancillary rooms account for 200 sq meters. Total floor area of the building is 650 sq meters. It is a brick one-story building with metal roof; air conditioning and heating via central units to all common areas and each resident’s room will have an individual reverse cycle unit. There are 9 bedrooms with attached en-suite. The nursing home has its own kitchen to cook all meals and laundry and all linen will be processed on site. Others facilities are car park and garden will account for 165 sq meters to meet the standard and provide healthy environment to the residents. Therefore the total land for the nursing home is 815 sq meters. The building will have sprinkler system to meet fire safety requirement. According to Hanna Newman associates Pty. Ltd. a company has been involved as quantity Surveyors and Project Managers of many aged care facilities over the past 15 years and has expert knowledge in the area of costs for such facilities, report (2001), the cost of a residential aged care facility ranges between $90,000 without any facility and $105,000 for complete facilities. The nursing home facility life expectancy commonly can stand to 20 years. The proposed nursing home will have all the facilities to attract and provide good service to the residents; therefore the cost of the nursing homes is $105,000 per bed. A Director of Nursing will be employed to manage the nursing home. According to Aged Care Act 1997, one registered nurse should supervise the nursing home every shift. It means six Registered Nurses will be employed to meet the standard requirement. According to Department of Health, Housing and community Services Aged and Community Care Division (1993) to provide reasonable aged care, one aged care nurse is to look after maximum 6 residents. It means 10 aged care nurse will be employed to look after 18 residents every day. A Clerical will help the Director of Nursing to do administration work. The meal will serve every day by 1 permanent full time and 1 part time chef. Further a Trade will maintain the nursing home.

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