The average amount of unspent funds per home care package client has hit almost $7,000 and total unspent funds are likely to reach $600 million by the end of the financial year, a key financial analysis shows.
Regulatory changes and funding pressures have led to the “disturbing statistic” that more than 42 per cent of residential facilities are operating at loss, StewartBrown says in its half-yearly report on the financial performance of the aged care sector.
The residential aged care occupancy rate hit a 10-year low last financial year, new government figures show, but the rate finding is at odds with a key industry report.
The residential aged care sector is continuing to experience ongoing financial challenges, according to the latest data from StewartBrown’s quarterly benchmarking report.
The Department of Health is calling on aged care providers and peak bodies to complete a survey about unused residential aged care places.
The proportion of aged care facilities operating at a loss has increased by more than 11 per cent over 12 months with those in rural and remote areas faring the worst, StewartBrown’s year-end report on the financial performance of the aged care sector shows.
The home care sector has experienced a more than six per cent decline in profitability over the last year as providers continue to accumulate a growing mountain of unspent funds, a key financial report has found.
Daily payments were preferred over lump sums to pay for residential aged care accommodation in 2016-17, the first time since the 2014 reforms, the sixth Aged Care Financing Authority report shows.
There needs to be greater financial transparency of all aged care providers receiving taxpayer funds plus a stronger focus on the financial sustainability of the sector, a Senate inquiry has heard this week.
The results for the nine months ending 31 March 2018 indicate the financial performance of residential aged care facilities is continuing to deteriorate, StewartBrown’s new quarterly benchmarking report shows.
The proportion of aged care facilities reporting a loss has grown from 34 to 41 per cent in six months, according to StewartBrown’s latest benchmarking report, which found an increasing number of financially vulnerable facilities.
Uncapping the daily care fee is the best option for boosting the declining revenue of residential aged care organisations, an aged care consultant tells AAA.
For-profit and metropolitan providers continue to outperform other operators and financial performance across the board is strong with profit and investment up, according to the Aged Care Financing Authority.
Residential aged care providers should look at introducing additional services in order to cover the funding shortfalls in everyday living expenses and care, a leading consultant says.