Sector ‘better off’ under AN-ACC survey shows

The Mirus Australia survey also shows providers are embracing innovative strategies to ensure future profitability.

Sixty per cent of aged care leaders responding to a survey agree their business is financially enhanced under AN-ACC.

Conducted by aged care consultancy firm Mirus Australia, the survey canvassed 233 executives from 170 aged care organisations across Australia.

Source: Mirus Australia

When asked about the financial impact of the Australian National Aged Care Classification funding model compared to the previous Aged Care Funding Instrument, three in five respondents strongly agreed (16 per cent) or agreed (44 per cent) their organisation is financially better off under AN-ACC. Thirty-two per cent were unsure while 8 per cent disagreed.

Commenting on the result, Mirus Australia founder Rob Covino told Australian Ageing Agenda: “It’s clear that while there is optimism, there remains a significant level of uncertainty among leaders.”

Mirus Australia chief executive officer Andrew Farmer agreed. “Our survey shows a cautiously optimistic view with 60 per cent of respondents agreeing that their business is financially better off under the new structure,” he said. “However, there’s still a significant proportion – 32 per cent – who are unsure about the impact, indicating the need for continued support and adaptation.”

Source: Mirus Australia

Respondents were also asked about non-care income and future profitability. Just over half strongly agreed (7 per cent) or agreed (44 per cent) that future profitability will depend on non-care income; 43 per cent were unsure, 6 per cent disagreed.

“With nearly half of the respondents agreeing on the necessity of non-care income, aged care providers are looking beyond traditional funding sources to ensure financial sustainability within their organisations,” said Mr Covino.

“As providers continue to explore innovative funding sources, we are also encouraging them to leverage efficiencies gained through the emergence of AI,” he added. “Specifically, addressing areas that can reduce non-direct care activities and costs to bolster profitability.”

When asked about strategic reviews and innovation, a large majortiy of respondents strongly agreed (27 per cent) or agreed (56 per cent) they will review alternative strategies for profitability over the next 12 months; 16 per cent were unsure.

Source: Mirus Australia

When survey participants were asked for key factors to future profitability:

  • 15 per cent said increasing consumer contributions to daily living
  • 14 per cent said increasing revenue from additional services
  • 11 per cent said they were exploring other innovations
  • 10 per cent of respondents said increasing accommodation prices
  • 9  per cent said they were considering retaining a component of deposits.

Meanwhile, two in five respondents (41 per cent) believe a combination of all of the above strategies is essential to future profitability.

Andrew Farmer

“The emphasis on non-care income and the proactive review of alternative strategies indicate that aged care leaders are keenly aware of the need for financial innovation,” said Mr Farmer. “Identifying alternative revenue streams and adopting a multifaceted approach to profitability are critical for ensuring long-term viability.”

Mr Farmer said the survey results show the sector is not only adapting to new funding mechanisms but also energetically seeking innovative solutions to future challenges.

“The fact that 41 per cent of respondents believe a combination of strategies is essential really tells the story of the complexity of the financial landscape in aged care. It’s not just about increasing prices or consumer contributions, it’s about integrating multiple approaches to build a sustainable business model.”

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Tags: AN-ACC, Andrew Farmer, innovation, mirus australia, survey,

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