Home' Japara Healthcare Annual Report : Japara Healthcare Annual Report 2017 Contents The Group delivers care and services to its residents through a comprehensive and robust process which is supported by policies and
procedures which comply with the Aged Care Act 1997. Facility staff are under the control and supervision of qualified facility managers and
receive regular ongoing training to safeguard and promote the wellbeing, health and safety of both residents and themselves. Audits and
post incident investigations are conducted to identify and address risks of injury or illness. Facilities are assisted by a centralised team which
provides OHS, human resources and operational support. The Group Executive -- Care and Commercial has overall responsibility for resident
care services while the Group Executive -- People and Infrastructure has overall responsibility for staff wellbeing. Both executives report directly
to the CEO and provide monthly reports to the Board on the wellbeing, health and safety of residents and staff. The Board has established a
Zero Harm Committee with the objective to ensure that the Company's commitment to zero harm is embedded across the Group and policies,
procedures and practices for resident safety, clinical care and workplace health and safety are in place and overseen. Statistical reports
showing injury frequency rates, near misses and other care and wellbeing indicators are provided to the Committee quarterly.
Loss of key personnel
The Group relies on a high-quality management team with significant aged care industry experience. The loss of key members of the Group's
management team could adversely affect the Group's ability to operate its facilities and its business to the current standard.
This could undermine the Group's ability to effectively comply with regulations and may also result in a reduction in demand for the Group's
aged care services from new and existing residents. Either of these occurrences may adversely impact on the Group's financial performance
The Group has processes in place to manage the potential loss of key personnel. The Board has responsibility for CEO succession planning
whilst the CEO has responsibility for succession planning of other key personnel with the support of the executive leadership team. The Board
is required to be immediately advised of any resignation or termination of a key person via the Company Secretary or CEO. The Company's
remuneration incentive arrangements for key personnel are overseen by the Remuneration and Nomination Committee. These arrangements
can assist with retention through their design, including deferral and forfeiture elements. Key personnel also have extended termination of
employment notice periods in their employment contracts to allow for an orderly transition of the role.
Loss of approvals or accreditation
Aged care facilities are required at law to be operated by Approved Providers and accredited in various ways. These approvals are generally
subject to regular review and may be revoked in certain circumstances. Aged care facilities must be accredited to attract Government care and
accommodation funding. If the Group does not comply with regulation and is unable to secure accreditation for the operation of its aged care
facilities and resident places in the future, or if any of its existing accreditation or approvals are adversely amended or revoked, this is likely to
affect Government funding, result in the breach of bank financing lending covenants and therefore adversely impact the financial performance
and position and future prospects of the Group.
The Group has robust policies and procedures in place covering all 44 accreditation standards each facility must meet. Facility staff are
educated and regularly trained to ensure these standards are upheld and are supported by a centralised quality control team. When the Group
acquires a new facility, it undertakes a review of accreditation standards within three months using a gap analysis process to identify risks.
New facilities are transitioned to Group standards with the support of the quality control team. The Group Executive -- Care and Commercial has
overall responsibility for ensuring accreditation standards are maintained and reports directly to the CEO. The Board is provided with regular
reports on the outcomes of periodic Government accreditation audits with learning communicated across the Group. Remuneration incentive
arrangements for the executive leadership team, which includes the Group Executive -- Care and Commercial and the CEO, have a gateway
hurdle that the Group must maintain ongoing accreditation and compliance standards.
The Group operates in a commercially sensitive industry in which its reputation could be adversely impacted should it, or the aged care industry
generally, suffer from any adverse publicity. Such publicity may lead to a reduction in the number of existing residents at the Group's facilities or
the Group's ability to attract new residents to its facilities, both of which occurrences may adversely impact the Group's financial performance
and position and future prospects.
Robust controls and processes are in place around resident care, health and safety issues. The Group seeks to avoid reputational incidents
through a strong operating and control environment. When potential incidents are identified or become known they are promptly reported
through the Group Executive -- Care and Commercial to the other executive leadership team members and to the Board (when applicable)
in accordance with standing policy. The executive leadership team, under the CEO's direction, is responsible for developing appropriate
strategies and responses. The CEO and Chief Financial Officer have authority under the Group's Communication Strategy for commenting
externally on reputational related matters. The Group engages external public relations advisers and other experts as required to assist with
strategy, response and handling. From an industry perspective, the Company supports and is also supported by the Aged Care Guild of which
it is an active member. The Aged Care Guild is proactive in raising concerns and providing positions and responses to industry related matters.
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