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MERCY HEALTH HEALTH FIR ROOTED IN FAITH: A VISION FOR COMPASSIONATE AGING AT A GLANCE MERCY HEALTH AUSTRALIA WHAT: A Catholic healthcare organization providing services across various sectors, including hospital care, aged care, mental health, women’s healthcare, palliative care, and community support. WHERE: Located across various regions in Australia, with significant operations in states such as Victoria, New South Wales, Queensland, and Western Australia. WEBSITE: www.mercyhealth.com.au 1 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 09
With a legacy of service for over a century, Mercy Health Australia has led the way in compassionate care. The organization’s development has been shaped by the values of the Sisters of Mercy, who arrived in Australia in the 1800s. Clare Douglas, Chief Executive of Healthy Ageing at Mercy Health, underscores the organization’s foundation: “We are a faith-based organization with values stemming from the Sisters of Mercy. These values define everything we do, from the care we provide to how we treat our staff and volunteers.” Mercy Health’s mission has expanded beyond RST 2 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 09
its religious origins, becoming a leading national healthcare provider with a diverse portfolio across hospital and aged care services. The Sisters of Mercy, who came to Australia in the 1800s, opened their first hospital, St. Benedict’s in Melbourne in 1920, now known as Cabrini Hospital. Today, Mercy Health operates public hospitals and private aged care services, generating over $1 billion in revenue, with approximately $600 million coming from hospitals and $400 million from aged care. Since entering the aged care sector in 1997 with the acquisition of its first two homes, Mercy Health has grown to operate 30 Residential Aged Care Facilities and a home care business that served 9,000 clients last year. Additionally, the organization offers 443 independent living units across 10 different sites, all integrated within precincts that include residential aged care facilities. CREATING HOME-LIKE ENVIRONMENTS One of Mercy Health’s core achievements is its dedication to innovative and person-centered models of care. Recognizing that traditional Residential Aged Care facilities are not always aligned with the evolving expectations of residents, the organization has embraced new approaches that provide more intimate and homely environments. “In our small household living model, we have eight residents in a house, each with its kitchen, living, and entertainment areas,” Douglas explains. “This fosters a sense of community and normalcy, as care companions are rostered to the same residents as much as possible, creating stronger bonds and more personalized care.” This smaller-scale model emphasizes a home-like atmosphere, allowing residents to cook and socialize in a familiar, intimate setting. These homes are designed to emulate the warmth and comfort of a family home, in contrast to the Residential Aged Care facilities layout, which features bed spaces around a central kitchen and dining area.The medium model operates similarly, accommodating 15 residents in slightly larger wings while preserving the personal touch that residents seek in their later years. Douglas highlights the importance of these modernized care environments: “The small household 3 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 09 MERCY HEALTH
living model is where we’re heading with future developments, as it aligns better with what residents and their families now expect—a more home-like setting where their dignity and independence are maintained.” HOLISTIC APPROACH TO AGING Mercy Health’s commitment to holistic care extends beyond residential facilities.The organization offers a continuum of care, providing services across retirement living, home care, and residential aged care.This model ensures that individuals receive the appropriate level of care as their needs change over time, allowing them to age with dignity and security. “Our model is built around healthy ageing,” explains Douglas. “We offer everything from independent retirement living to home care services that help people remain in their homes for as long as possible. And when they need more comprehensive care, we provide that through our residential aged care facilities.” Mercy Health’s home care services are particularly robust, with a wide variety of packages designed to meet the needs of Australia’s ageing population. From essential services like gardening and cleaning to more clinical support, the organization tailors its offerings to each individual’s circumstances.“We look after people not just in our retirement living facilities but also more broadly in the community,” says Douglas. “More than 55% of our home care clients have a home care package, and we provide care to veterans and individuals with disabilities as well.” Mercy Health also plays a key role in supporting regional areas, which often lack the same level of access to aged care services as metropolitan regions. This focus on rural and regional support aligns with the organization’s mission to ensure that all Australians, regardless of their economic background or location, receive high-quality care as they age. LEADERSHIP IN DEMENTIA CARE One of Mercy Health’s most important initiatives is its focus on dementia care, which is increasingly imperative as Australia’s population ages. Around 4 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 09
85% of residents in aged care facilities have some form of dementia, with many experiencing severe symptoms. Mercy Health has embarked on several groundbreaking research initiatives to address this growing challenge, including a partnership with Monash University to co-design a dementia care model based on the Montessori method. “The Montessori model of dementia care is about providing meaningful activities and a sense of purpose to those living with dementia,” Douglas explains.“Our partnership with Monash University is helping us create a model that emphasizes independence and dignity, ensuring that our residents can continue to engage in life in meaningful ways.” This partnership also examines how the physical environment of aged care homes impacts those 5 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 09 MERCY HEALTH
with dementia. An audit conducted by Dementia Australia at Mercy Place Parkville identified areas for improvement, and the organization is working to enhance the living conditions for residents with dementia.“The environment is critical for individuals with dementia,” says Douglas. “Simple changes can make a huge difference in how comfortable and secure they feel.” In addition to environmental improvements, Mercy Health has introduced technologies to enhance the quality of life for residents with dementia. One such tool is Paro, a robotic seal designed to provide comfort and companionship to agitated or distressed individuals. “It’s amazing to see Paro’s calming effect on residents,” says Douglas. “It responds to touch, making seal noises and moving, and it helps residents feel more relaxed.” Mercy Health has also adopted “Hug,” a therapeutic device miming the sensation of hugging another person.This tool is particularly effective for residents who may feel isolated or agitated, providing them with the comfort and security of physical touch. SUPPORTING A DEDICATED WORKFORCE Mercy Health’s commitment to excellence extends to its workforce, comprising 10,000 employees, including approximately 4,500 within the Healthy Ageing division. The organization takes pride in providing opportunities for staff to grow and advance in their careers. “We have several people in our organization who have progressed through multiple roles, starting as personal care attendants (PCAs) and advancing to leadership positions,” says Douglas. Mercy Health actively supports the career development of its staff, offering training and educational opportunities through partnerships with universities such as Australian Catholic University. These partnerships provide students with hands-on experience in aged care settings, often leading to permanent employment within the organization. Douglas emphasizes the importance of these relationships: “We want to help people start their careers with us, grow with us, and stay with us.” INVESTING IN INFRASTRUCTURE As Mercy Health continues to expand its footprint, the organization is investing heavily in new infrastructure and facility upgrades. One of its most significant projects is constructing a new 120-bed facility in Mentone, Victoria. This facility, which follows the small household living model, will consolidate residents from three smaller homes into a single, state-of-the-art building. The project is set 6 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 09
to be completed in February next year. In addition to new construction, Mercy Health is expanding its independent living offerings, with 22 new units currently under construction in Bendigo. Several refurbishment projects are underway, including a $5 million upgrade to a home in East Melbourne and a $10 million renovation at Rice Village in Geelong. “We’re committed to ensuring that our facilities are not only functional but also comfortable and welcoming for our residents,” says Douglas. “We’re investing millions of dollars in upgrades to ensure that our homes remain up to date and can continue to provide the best possible care.” ADDRESSING INDUSTRY CHALLENGES The aged care sector in Australia is undergoing significant change in the wake of the Royal 7 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 09 MERCY HEALTH
Commission into Aged Care Quality and Safety. The commission’s recommendations have placed increased pressure on providers to meet higher standards of care, including new minimum staffing requirements. Like many other providers, Mercy Health faces challenges in meeting these standards while remaining financially sustainable. “One of the biggest challenges we face is workforce shortages,” says Douglas. “There are simply not enough staff to meet the growing demand for aged care services, and we’re competing with other providers for a limited talent pool.” Financial sustainability is another critical concern. A government task force recently reviewed aged care funding, and Mercy Health is hopeful that the recommendations from this review will lead to a more sustainable model for the future. “The current funding model doesn’t provide a significant 8 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 09
operational margin, making it difficult to invest in the future,” says Douglas.“We support the task force’s recommendations and await the government’s response.” Despite these challenges, Mercy Health remains committed to providing high-quality care to Australia’s ageing population. The organization is developing a new strategic plan to guide its growth and development over the next decade. A key focus of this plan is addressing unmet needs, particularly in regional areas where access to aged care services is limited. A VISION FOR COMPASSIONATE, SUSTAINABLE GROWTH “We see aged care as a fundamental part of our future,” says Douglas. “Our goal is to grow our residential care capacity while also expanding our home care services to ensure that more Australians can age in place with the support they need.” Mercy Health’s vision for the future centers on growth, compassion, and innovation. The organization is well-equipped to shape the future of aged care in Australia through its forward-thinking care models, dedication to research and development, and strong 9 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 09 MERCY HEALTH
PREFERRED VENDOR/PARTNER n Prodigy Health Solutions www.prodigyhealthsolutions.com.au Prodigy Health Solutions is a trusted provider of staffing and healthcare services, partnering with aged care providers and communities nationwide. Specialising in skilled nursing support, with a focus on Registered Nurses and Personal Carers, the company also offers a comprehensive suite of tailored NDIS support services designed to enhance independence and well-being. emphasis on staff and resident well-being. “We want to stay a national provider and continue growing and developing our services,” Douglas concludes. “But most importantly, we want to ensure that we provide the best possible care to our residents and clients, allowing them to live their final years with dignity, comfort, and joy.” 10 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 09
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