Tuesday, 9 August 2022
    Three in five homes making losses
    20
    Apr
    Aged Care,

    Three in five homes making losses


    The number of aged care homes operating at a loss has gone up despite the daily living subsidy supplement as revenue and occupancy fall, according to a new industry report, Australian Ageing Agenda reports.

    The StewartBrown December 2021 Aged Care Financial Performance Survey collates the financial data of 281 providers and 1,282 aged care homes – accounting for 103,675 beds across Australia – for the first half of this financial year.

    It found that providers on average are making an operating loss of $10.31 per bed per day even with the $10 daily fee supplement from 1 July. The result is worse than 2021 July-September quarter ($7.30 loss), the same six-month period in 2020 ($4.96 loss) and the 2020-21 financial year ($8.43 loss).

    It means for the six months to Dec-21, that 60 per cent of aged care homes recorded an operating loss and 35 per cent recorded an operating cash loss. That’s up from 56 per cent and 32 per cent respectively for the first quarter and 51 per cent and 28 per cent respectively at the same time the previous year.

    StewartBrown senior partner Grant Corderoy said the first quarter is usually better than the half-yearly result but not by this much.

    “It’s no surprise it was worse than the first quarter, but it’s a surprise it is significantly worse than the first quarter,” Mr Corderoy told Australian Ageing Agenda.

    He said December 2020 had the benefit of some COVID funding, but this year has the $10 supplement. However, StewartBrown estimates that homes on average are using $8.50 of this to cover existing expenses.

    “Providers use on average $1.50 of it to increase their cost be it food or other areas, but the rest was really to recoup the significant costs of everyday living.” If you take out the supplement, “it’s really a $17 or $18 per bed per day loss, which is a significant shortfall”, he said.

    FULL STORY

    Three in five homes making a loss (Australian Ageing Agenda)

    PHOTO

    StockSnap / Pixabay