Aged Care Insite Australia's number one aged care news source
Experts are calling for emergency government funding to prevent more aged care homes from going under.
StewartBrown's latest March 2022 Sector Report reveals the financial performance of the aged care sector over the past nine months.
The report showed that 64 per cent of homes have been operating at a loss, an increase by 4 per cent compared to the previous survey.
Senior Partner at StewartBrown, Grant Corderoy, warns this number will rise to at least 67 per cent by the end of 2022.
"They are at a critical juncture of their sustainability," Corderoy says.
"Providers have had five years of aggregate losses, and their reserves are now depleted."
Corderoy says emergency funding of $3,000 a bed is needed from August and a similar amount in January and February to allow the sector to retain its viability while the government's initiatives start to take effect.
Aged Care Insite discussed the new figures with Corderoy and what they mean for the sector.
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What is the new government waiting for? They were pretty confident prior to the election that the residential care sector had been neglected and underfunded causing massive hardship for operators, and it’s being going on since 2015.
Lots of facilities have also put in a claim for compensation to recover huge Covid 19 costs but the government seems to be dragging their feet here as well!
Costs have skyrocketed, a 5% wage increase not funded despite promises…. Scott Morrison oversaw so much damage on his watch so let’s get this fixed now.
Lots of talk before the election Labor, not much action since though.
So many homes on the brink of closure!