What is the difference between facilities, financially?
Jack was looking at two different aged care facilities, one had a bigger Accommodation bond ($850K) than the other ($710K), & also charged an additional service fee ($24/day) than the other. However, the more expensive one was much nicer, newer & the room opened onto a lovely garden area, whereas as the cheaper one was on the second floor & had no outlook.
Jack’s son thought that the more expensive facility was not affordable for Jack.
Once we had done the analysis during the “Aged Care Options” appointment we were able to demonstrate that the difference between the two facilities got down to an annual difference of $4,058pa ie the more expensive facility only cost $4,058pa more than the cheaper one. The difference was not $140,000 more, & was not $24/day more, because paying the bigger bond enabled Jack to get a great deal more pension & actually reduced the Means Tested Fee, which reduced the difference between the two facilities to $4,058pa.
On seeing this the family decided to go for the more expensive facility, because it was worth that much extra & was better for Jack (he liked the room more) & also better for the family as they were able to go out into the garden area when they visited him. Their view was “so what if get $20,000 less in our inheritance, Jack gets a nicer facility for the rest of his life.
Most people simply look at the room price, & make a choice based on that, whereas you need to consider the full financial impact on the resident, & as in Jack’s case, there are outcomes which are unexpected. An “Aged Care Options appointment will help you to see the real difference & allow you to make a more informed decision.