Check yourself out!
It’s that time of year again- time to check your financial health and participate in this year’s annual review of the sector.
Residential aged care providers with an insight into how their own financial performance fares compared to key industry benchmarks are bound to be in a much stronger position than those providers solely focused on their own balance sheets.
It is for this reason that Bentleys director, Health Shonhan, encourages all providers to participate in the company’s 16th annual review of the sector, with submissions open now.
The Bentleys Aged Care Survey is regarded as the industry’s major benchmarking tool for measuring financial and operational wellbeing, and informing key stakeholders about national issues and opportunities facing the sector.
“For individual providers, the survey works to pinpoint the strengths and weaknesses of their financial position and identify areas they should be focusing on,” said Bentleys director Heath Shonhan.
“It’s also really critical for providers to understand what has happened to their equity position over the last 12 months and see how it compares to the industry.”
The survey, which can be completed online, is comprised of two-phases. The first phase requires providers to submit their 2009-2010 general purpose financial report information by Friday 3 December.
Mr Shonhan said that this process will help to inform the Balance Sheet Health Check, which will be reported back to participants by the end of the year for free, and will provide a top-line assessment of providers’ financial health compared to others.
“It’s very straightforward for providers to extract this information directly from their audited financial statements, or they can even request their auditor to supply it for them.”
In the second phase, providers need to input profit and loss and other operational data before Friday 17 December.
Bentleys will then use the data to provide a benchmarking report for each participating provider which measures their financial performance and provides assistance with resource planning.
“The analysis of provider data also offers a invaluable insight into their performance across the industry to better inform the sector and its stakeholders.
“…Last year we got a lot of good information about the health of the industry from the survey, as well as data about what return on investments providers should expect, liquidity levels, current assets, total current liabbility ratios and more.”
“Providers can choose to participate in just one or both phases of the survey, however full survey participants benefit from more precise analysis of their individual results and are provided with a more comprehensive electronic data package at no cost.”
The survey, Mr Shonhan said, provides trade unions with data to advocate for higher wages and providers to fight for more funding. It is also a “really good litmus test on the balance sheets,”
“If you are only ever looking at what your own service is doing, then how will you ever know what the rest of the world is doing?”
For more information, to register or to keep up to date with the survey as it progresses by joining the mailing list, click here.
