Leading Age Services Australia (LASA) has issued an aged care viability warning for government, saying almost 200 residential aged care providers housing up to 50,000 people across Australia are at risk of unacceptably high levels of financial distress.
The peak body brought in accounting professionals to look at the latest deidentified data from the Government’s 2017-2018 Aged Care Financial Reports.
They revealed a “concerning liquidity ratio result” for 197 providers. “That is, for these providers, current liabilities (excluding Refundable Accommodation Deposits) were greater than their current assets,” the peak said in a statement.
Chief executive Sean Rooney said the new figures reveal the “dire situation facing many services” and reiterated LASA’s call for $1.3 billion in additional operational funding before Christmas.
“We are also calling for a structural adjustment program to avoid the risk of unplanned closures of distressed services, while maintaining continuity of care for residents,” Rooney said.
Aged care minister Richard Colbeck reaffirmed in parliament on Tuesday that government would make additional investment into the aged care sector prior to Christmas.
“The government has taken significant efforts over recent times to repair the aged care system,” Colbeck said in answer to a Labor question about the LASA report.
He said the government was focused on home care places, young people in aged care and the use of restraints – three areas identified as urgent in the royal commission’s interim report.
But Rooney said the additional funding needed should be on top of the government’s commitment to a quick response to the report’s priorities.Do you have an idea for a story?
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