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Almost 200 aged care homes face financial distress: LASA

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.

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One comment

  1. Will the names of the aged care homes that are in distress be made available to the public ? Where would I be able to access this information .
    Can anyone advise me please ?
    I would have thought that the government / and / or aged care regulators have a duty of care to do so .?
    I understand that upon entering an aged care home the prospective resident is supposed to check the financial viability of the prospective home ….and I imagine current residents did so prior to entering … but what protections does that resident have against future cuts to residents care ?
    I have the deepest sympathy for families of residents who who I imagine complained , but in the absence of changed felt trapped , given the shortage of aged care facilities.
    Also in the case of Southern Cross Organisation , who have a number of homes across Australia , were all of their facilities affected or just the rural facilities .
    I would have thought that the broader organisation would have had the capacity ensure adequate support for the less financially viable homes but not so .?
    And having said all of that , I seems homes could be financially viable an still not proved adequate care .
    I am astonished to read thar residents had their care reduced by 50 mins per person per day !
    How much time was the Gov funding for personal these residents , can the residents families be informed on entry ?
    My mind is boggling ….thank you to all the aged care watchdogs and organisations trying to help seems like an enormous task .

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