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18-06-2021, 09:58 AM
#1091
I don’t think they are doing this to make money. I think they understand that as long as they can cover their costs, this is a clever strategy to bring people living at home, in the area, into the Arvida “community.” They will get to see the on-site facilities, will socialise/mix with current residents, will make friendships and will (hopefully) decide that Arvida is where they want to be if they need residential care in the future. Benefits exisiting residents too as it brings the two communities internal and external) together in a very positive way. Whether Arvida will be looking to pick up the local community care contract or not, remains to be seen, but I think they will do it regardless, at the lowest cost possible.
A very clever move.
Originally Posted by BlackPeter
There is certainly demand, but hard to make money with that given huge demands on nursing time in community care, additional (normally unpaid) travel time for the nurses and little payment for services through the government.
Took GXH a long time to get their community care at least cash flow positive, and in part they did this by simply stopping to bid for unprofitable contracts.
Maybe that's the contracts Arvida is now taking over?
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18-06-2021, 10:13 AM
#1092
Member
It is a marketing strategy to touch potential customers if I have to put some commercial words here.
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18-06-2021, 10:14 AM
#1093
Originally Posted by justakiwi
I don’t think they are doing this to make money. I think they understand that as long as they can cover their costs, this is a clever strategy to bring people living at home, in the area, into the Arvida “community.” They will get to see the on-site facilities, will socialise/mix with current residents, will make friendships and will (hopefully) decide that Arvida is where they want to be if they need residential care in the future. Benefits exisiting residents too as it brings the two communities internal and external) together in a very positive way. Whether Arvida will be looking to pick up the local community care contract or not, remains to be seen, but I think they will do it regardless, at the lowest cost possible.
A very clever move.
Bit concerning if they don't do this to make money ... are you saying Arvida is a charity or non for profit organisation? I'd see the plan just as a marketing exercise.
And to be honest - the standard plan ($5 per week) does not seem to offer a lot apart from a monthly phone call and some discounts in cafés and other businesses which may or may not be of interest for the individual.
If they get however into the work intensive home care we will see how they go - and while I agree that this might have a nice charity touch - only time will tell whether they are able to afford to pay the "marketing fees" and whether there is a positive return on them.
Is this a clever move? I doubt it. Spending more money than you earn is normally just a recipe for disaster ...
----
"Prediction is very difficult, especially about the future" (Niels Bohr)
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18-06-2021, 10:20 AM
#1094
I didn’t say or imply they are doing it to lose money. Yes, it is a marketing exercise. Read my post again.
Originally Posted by BlackPeter
Bit concerning if they don't do this to make money ... are you saying Arvida is a charity or non for profit organisation? I'd see the plan just as a marketing exercise.
And to be honest - the standard plan ($5 per week) does not seem to offer a lot apart from a monthly phone call and some discounts in cafés and other businesses which may or may not be of interest for the individual.
If they get however into the work intensive home care we will see how they go - and while I agree that this might have a nice charity touch - only time will tell whether they are able to afford to pay the "marketing fees" and whether there is a positive return on them.
Is this a clever move? I doubt it. Spending more money than you earn is normally just a recipe for disaster ...
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18-06-2021, 10:21 AM
#1095
Exactly. But at the same time, it will provide a beneficial service to the local community.
Originally Posted by flyinglizard
It is a marketing strategy to touch potential customers if I have to put some commercial words here.
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18-06-2021, 10:27 AM
#1096
Member
BP, $5/week is only for membership fee, the plan Help at home is $30/week with $36 hourly rate, Care at Home is $50/week at Home with $43 hourly rate, Moving well (Gym and Pool) is $20/week, Good friends go is $20/week.
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18-06-2021, 10:29 AM
#1097
Member
Originally Posted by justakiwi
Exactly. But at the same time, it will provide a beneficial service to the local community.
I think the proposed new regulation requires retirement village doing social activities for residents. They plan well and will make the auditors and government happy.
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18-06-2021, 11:30 AM
#1098
Originally Posted by percy
Interesting.
Yet there are a good number of free services available.
Are you meaning government funded services? I assume these are means tested? I thought the pricing mentioned by flyinglizard would be within the financial capability of some older people living at home who don't qualify under means testing.
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18-06-2021, 12:17 PM
#1099
It will be interesting to see whether ARV can make a dent on the strangle-hold the big four or so 'care provider' companies who have the lions share of the DHB contract spend in this area of care services.
Do people know that this 'sector' of care services is government funded via long term contracts with DHB's? Check out https://www.healthcarenz.co.nz for example. So ARV is essentially a new startup competitor in their space.
A quick look at the numbers and I'm not convinced yet that ARV's pricing for the services can do this profitably or breakeven without tapping into the government spend. A distraction from core business as well.
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22-06-2021, 05:23 PM
#1100
Member
PE = 8.1
PB = 1.4
DIVIDEND YIELD = 2.73%
What I say
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