Insights from Tim Pritchard at CARE360: The Importance of Cash Management for Aged Care Providers

Expert Opinion of Tim Pritchard is published in ACCPA’s Aged Care Today Spring 2023. Tim shared insights on The Significance of Cash Management and What Aged Care Providers Should Know about this.

We encourage all our well wishers and members to explore ACCPA’s latest publication. Tim’s column is just one example of the thought leadership that defines CARE360. You can access the publication here https://issuu.com/adbourne/docs/aged_care_today_spring_2023_final 

Find Tim’s contribution on the 90th page, here Tim Pritchard

In that column, Tim emphasises the crucial role of effective financial management, mainly focusing on managing cash flows for sustainability and high-quality care delivery in the aged care sector.

In today’s enlightening discussion, we are fortunate to engage with Tim Pritchard, a highly experienced aged care and Aged care finance professional. Tim will provide insights into the importance of adeptly navigating the Cash Management of aged care and some expert opinion for Aged Care Providers.

Let’s get started,

Q: Tim, please tell us the key insights about cash management in the aged care sector.

Tim: Despite regulatory changes, operators retain control over the balance sheet, emphasising effective financial management. Specifically, adept cash management is pivotal, offering significant benefits and opportunities for aged care providers.

Proactively managing cash contributes to financial stability and facilitates infrastructure investment, staff training, and equipment upgrades. This approach is essential for ensuring the sustained viability of aged care facilities in the long run.

Q: Tim, in Aged Care Today Spring 2023, you mentioned “Being Clever”. Can you elaborate on what you mean by ‘being clever’ in the context of cash management, and how does this differ from managing an investment portfolio?

Tim: Certainly. When I refer to ‘being clever’ in cash management, I mean being efficient – maximising earnings from banks on any capital and ensuring excess cash flow isn’t left with banks with little to no interest. This approach differs from managing an investment portfolio or using complex structured products.

Q: Tim, in the column, the significance of treasury functions in the aged care sector is mentioned. Can you explain why these functions are crucial for providers?

Tim: Absolutely. In the aged care sector, it’s not just about accounting; it’s about treasury functions. This involves effectively placing deposits and managing cash flow, which is pivotal for maintaining financial stability, analysing cash flows, and identifying surplus funds. It’s integral to the overall financial health of aged care providers.

Q: Tim, the text mentions that Care360 extends providers’ financial resources. How does Care360 achieve this, and what benefits does it offer aged care providers?

Tim: Care360, a FinTech company, combines transparent information and advice with innovative financial technology solutions. This combination aims to extend providers’ financial resources by reducing administrative burden and offering efficient cash management solutions. This allows aged care providers to focus more on delivering quality care.

Q: Tim, the importance of a tailored approach to treasury management for aged care operators is stressed in the text. Why is this customisation crucial, and how does it address each provider’s unique challenges?

Tim: Good question. Treasury management isn’t a one-size-fits-all solution. Each operator has a different strategy, and a tailored approach is crucial to address their unique financial challenges and goals. It ensures that the cash management strategy aligns perfectly with the specific needs of each aged care provider.

Q: Tim, the text mentions that Care360 addresses the needs of both aged care providers and families. How does Care360 achieve this dual focus, and what benefits does it bring to families involved in aged care decisions?

Tim: Care360 goes beyond partnering with aged care providers; we help families enhance their finances. This dual focus aims to secure the best possible support for loved ones in aged care while providing innovative solutions for providers. It’s about creating a comprehensive and supportive financial ecosystem for all involved.

Q: Tim, regarding depositing with banks, you advise aged care providers to choose banks actively seeking their capital. Can you explain why this is important and how it contributes to efficient cash management?

Tim: Certainly. Depositing with banks actively seeking your capital ensures a mutually beneficial relationship. Staying informed about interest rates, getting the best deal, and avoiding unnecessary risks contribute to efficient cash management. It’s about maximising returns while maintaining a strategic and beneficial partnership with the banks.

Q: Tim, could you provide a summary of your column on cash management for aged care providers in ACCPA’s Aged Care Today Spring 2023 publication?

Tim: In the column, I underscore operators’ control over managing the balance sheet despite regulatory changes. Effective financial management is crucial for sustainability and quality care delivery, especially in operating cash flows. I introduce Care360 as a FinTech partner offering tailored Treasury Management services, emphasising the importance of due diligence when selecting a finance company. The goal is to empower aged care providers to navigate financial complexities efficiently.

Good luck to Tim and CARE360. Hope we will get more expert opinions from the CARE360 team.

Thanks for being with us.