Three in four of the nation’s 2600 nursing homes face years of sustained financial losses if the Albanese Government fails to act on the funding recommendations of its own aged care taskforce, a new analysis warns. Source: The Australian.
Persistent losses across almost 2000 residential care facilities through to at least 2029 would inevitably see more closures, especially in rural and regional areas, at a time Australia’s ageing population requires more beds and more services, the report by leading aged care accountancy firm StewartBrown finds.
Already half the nation’s nursing homes are losing money, StewartBrown partner Grant Corderoy said in the Aged Care at the Crossroads report, with aggregate losses over the past five years hitting $5 billion.
“The lack of financial sustainability has significantly restricted new builds and innovation, and the sector is now at a crisis juncture where there is a significant risk that sufficient aged care beds will not be available to meet the future demand,” Mr Corderoy said.
The analysis shows the bottom 75 per cent of homes in terms of financial performance are currently losing $14.82 per bed per day, and if no reforms are made will continue to make significant losses each year through to 2029, when they will still be losing $14.09 per bed per day.
Mr Corderoy was a member of the Government’s aged care taskforce put together last year to look at the sector’s financial sustainability. It was chaired by Aged Care Minister Anika Wells and run by the Department of Prime Minister and Cabinet.
It reported to the Government in December with a series of recommendations, including that older Australians with the means pay more for the non-direct care components of their aged care, such as accommodation, food, cleaning and gardening.
The Government has yet to formally respond to the taskforce report or put forward the content of a new aged care Act as proposed by the royal commission, despite committing to enact legislation in this term of parliament for commencement next July.
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Aged care bed supply at a ‘crisis juncture’: report (By Stephen Lunn, The Australian)
