Patents filed for RAD optimiser
Aged care providers have free access for a limited time to trial a cutting-edge tool that can help homes set the best accommodation price points for their rooms.
Australian market and financial analysis company the Ageing Equation has filed patents for its online RAD-Equation tool in Australia and the United States of America.
The tool – which launched in September 2022 – is based on an advanced machine learning and artificial intelligence model that considers internal and external factors to predict the optimal refundable accommodation deposit for aged care rooms.
The company has also protected the underlying methodology of the RAD-Equation after finding it unique, said managing director Safdar Ali, who founded the Ageing Equation in 2017.
“The methodology behind RAD-Equation is considered novel in the world of predictive analysis making this innovation exclusive and cutting-edge,” Mr Ali told Australian Ageing Agenda.
The model has also been successfully tested to problems beyond the aged care sector, including loan credit defaults, disaster forecasting, fuel price trends, and species predictions, he said.
The factors considered for predicting an optimal aged care RAD include a resident’s financial capacity, the facility’s financial performance, occupancy levels, and the attributes of the room.
“By taking all these variables into account, RAD-Equation helps providers set more accurate and fairer RADs that reflect current market conditions,” Mr Ali said.
On 1 January this year, the maximum amount providers can charge a resident as a RAD or equivalent daily amount without approval from the Independent Hospital and Aged Care Pricing Authority increased from $550,000 to $750,000.
Mr Ali said he was concerned aged care providers will increase their prices close to the maximum without due consideration and potentially experience issues such as customer dissatisfaction and reduced occupancy.
To assist providers with the RAD limit change, and to celebrate the lodging of the patents, the Ageing Equation is offering the aged care sector a free trial of the tool so they can review their current prices and adjust accordingly.
“In my view, a systematic approach should be adopted to ensure the providers are realising the market potential without reduced risks of negative impact,” Mr Ali told AAA.
You can try out the tool at RAD-Equation trial – an information guide on how to use the tool is located on the same page under the map.
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