The Aged Care Industry Council (ACIC) has called for urgent action following the release of an independent analysis of the industry’s financial status for the financial year 2005/06.
The results show a rapid drop in sector-wide viability.
In just two years – between 2004 and 2006 – the industry’s net annual, per-bed profit fell from $3,600 to $1,700, said ACIC spokesperson and CEO of Aged Care Association Australia, Rod Young.
Fellow ACIC spokesperson and CEO of Aged and Community Services Australia, Greg Mundy, said the return on assets for all activities fell from 5.31 per cent in 2005 to 2.95 per cent in 2006.
The analysis was based on the findings of the Government’s independent assessor which draws upon data from the audited financial reports submitted by aged care providers for independent analysis and consolidation.