New report highlights worsening financial distress before impact of COVID-19

A new independent report conducted by StewartBrown  Accountants, highlights the increasing pressures on delivering quality residential aged care, with funding woes worsening well before the full financial impact of the COVID-19 pandemic.

The study shows 60   of surveyed residential facilities recorded an operating loss during the first nine months of this financial year.

The report notes that the care subsidy paid by go vernment (also known as the Aged Care Finance Instrument) has risen by 12 percent  since 2016, while direct care costs have gone up by 21 percent .

The report states that the average operating result for aged care homes is a loss of $2,835 per bed per annum.  The sector has long advocated to government that this situation is unsustainable and affects the ability of aged care providers to meet the needs of the older Australians in care.

Residential care homes continue to do an outstanding job in protecting residents from COVID-19 but the financial situation of aged care providers is likely to further deteriorate in the absence of additional government assistance.

The closure of the DP Jones Aged Care Home in Murchison in February highlights the precarious position care homes are facing.

The report recommends the government inject $1.7 billion in residential funding reform to maintain quality care in homes and improve training for staff.