For the first time, the Department of Health and Aged Care has published a snapshot of Australia’s Aged Care Sector, revealing that residential aged cares are under significant strain.
Commenting on the inaugural Quarterly Financial Snapshot of the Aged Care Sector (QFS), the Minister for Aged Care, Anika Wells said the report drew on financial information collected from aged care providers.
Ms Wells said the snapshot captured the period 1 July 2022 to 30 September 2022, prior to the implementation of major aged care reforms.
“Importantly these results show the sector prior to implementation of the new Australian National Aged Care Classification funding model, which commenced from 1 October 2022,” Ms Wells said.
“Future snapshots will show the impact of the Government’s reforms in supporting 24/7 nurses and delivering increases in care minutes,” she said.
“The snapshot shows residential aged care under significant strain, with 66 per cent of providers making a loss.”
In its report, the Department said the primary purpose of the QFS was to increase the transparency of the aged care system through the timely publication of financial performance data.
It said the snapshot showed for-profit and not-for-profit residential aged care providers returned a collective net loss before tax of $465.3 million.
“This equates to a net loss before tax of $27.90 per resident per day,” the Department said.
“The total average care minutes per resident per day for the sector was 187 minutes,” it said.
“From October 2023, it will be mandatory for providers to deliver an average of 200 care minutes per resident per day (including 40 minutes of registered nurse time).”
It said this would increase again to 215 minutes from October 2024 (including 44 minutes of registered nurse time).
The Department’s 27-page Report can be accessed at this PS News link.
