Residential finances continue to fluctuate while community care comes out on top.
Community care providers, especially those of EACH and EACHD packages, are achieving profits similar to the top quartile of residential care facilities, new research has found.
However, the authors of the financial performance report say it will be interesting to see how these profits move over time as client frailty increases.
The latest Stewart Brown survey of the six months ended 31 December said while the profitability of CACP has been in decline for some time, EACH and EACHD packages are more profitable on average than CACPs ever were.
The CACP average result was a profit of $2.65 per client day while for EACH it was $13.69. EACHD services show an operating profit of $21.36 per client day.
With regards to residential, the survey found 40 per cent of high care facilities and 48 per cent of low care facilities achieved an operating profit.
Overall, 45 per cent of all facilities in the survey made an operating profit, compared to 33.6 per cent for the 2009 financial year.
Wages continue to account for the biggest expense in the day-to-day running of a facility. The average wages cost as a percentage of operating income for high care facilities was 70.1 per cent. This is less than the average of 73.4 per cent at June 2009 and 74.7 per cent at June 2008.
In low care, the average was 65.6 per cent, marginally less than the 66.6 per cent average at June 2009.
The results are based on the financial performance of 380 facilities and 173 community care programs.
“In this report we can see the seasonal impact on aged care results, with the high care results slightly better than for the same period last year,” said Max Hopkins of Stewart Brown.
“We are concerned by the recent increases in utility costs, as well as on-going problems with catering and administration costs. Future expected increases in care staff rates of pay are also of concern,” he said.
See the full financial report at www.sbbsolutions.com.auDo you have an idea for a story?
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