Models & FinancesThe financial potential of intergenerational programs

Overview

Why it’s important

Examples

Financial benefits

One (1) chart!

5 takeaway points

Why it’s important

Age segregation

↑ costs, ↓ funding

Sustainability

$26B

Examples

Aged care facility / childcare early learning• E.g. KITE, OneCare, Strathern Scone

Aged care facility / retirement village / after & before school care• E.g. Blue Hills Vic

Aged care / retirement village / disability / commercial & retail• E.g. Box Hill Vic

Aged care / retirement village / tertiary education / research / commercial & retail• E.g. Western Sydney

How they Differ

Multi - service

Multi - delivery

Multi - ownership

Net Profit$350

Profit Centre 1

$100

Profit Centre 2

$50

Profit Centre 3

$200

Financial Benefits

Economies of scale

Cross subsidisation

Alternative income streams

Additional funding

Higher sales rates

↑ occupancy

↓ staff turnover

Volunteer labour

Fixed Cost$100

Entity 1$50

Entity 2$30

Entity 3$20

One Chart

-1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30(400,000)

(200,000)

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

0.7m

Base Case

Base - 7 years

Year of Operations

Net

Cas

h Po

sition

One Chart

-1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30(400,000)

(200,000)

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

0.7m

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

0.9m

Base Case VS $10

Base - 7 years +$10/day

Year of Operations

Net

Cas

h Po

sition

29%

One Chart

-1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30(400,000)

(200,000)

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

0.7m

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

1.0m

Base Case VS $15

Base - 7 years +$15/day

Year of Operations

Net

Cas

h Po

sition

43%

One Chart

-1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30(400,000)

(200,000)

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

0.7m

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

1.1m

Base CaseVS $20

Base - 7 years +$20/day

Year of Operations

Net

Cas

h Po

sition

57%

One Chart

-1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30(400,000)

(200,000)

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

0.7m

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

0.9m

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

1.0m

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

1.1m

Base CaseVS $10/15/20

Base - 7 years +$10/day +$15/day +$20/day

Year of Operations

Net

Cas

h Po

sition

5 takeaway points

1)Start early

2)Develop partnerships

3)Establish a business case

4)Beware possible downside

5)New normal

premierconsulting.com.au