NFP reaches record revenue with retirement focus
An Adelaide-based provider earned a record $42 million in the twelve months to June this year but says capital costs in residential aged care are prohibitive.
Aged care and retirement living provider Masonic Homes has released details of record annual revenue for the last financial year.
The Adelaide-based organisation drew in $42 million in the full year to June 30, 2008 – 11 per cent more than the previous year’s figure of $37.8 million.
Net profit for the period at $6.5 million was lower than the $8.3 million twelve months earlier though, as Masonic directed over $35 million into an ambitious operations and expansion program.
The organisation’s CEO, Doug Strain said the focus of the the group’s growth was the expanding retirement living market.
“The cost of residential aged care is a struggle for the industry,” said Mr Strain.
“We have declared we won’t be further expanding in residential care but we are focusing instead on retirement villages and community care packages, which we believe is where the care has got to be.”
“We are unbundling the care from the buildings. It’s the capital cost that is the killer so we need to separate those two elements.”
Mr Strain also sent a message to his industry colleagues, saying providers need to be far more mindful of the speed of change among people and processes within the sector.
“Everybody is an individual and we are going to have such a huge market. There is room for so many models, levels and different options,” he said.
