Leading Age Services Australia (LASA), the voice of aged care, is ramping up calls for an extra $1.3 billion in funding, as a new report warns of the risk of residential care home closures in both metropolitan and rural areas.
The latest StewartBrown survey of 984 homes shows 51 per cent of aged care facilities recorded an operating loss in the September quarter across all geographic regions.
“Without urgent additional funding, the care of thousands of vulnerable older Australians is at great risk, in country and city areas,” said LASA CEO Sean Rooney.
“This independent report highlights the importance of LASA’s call for an extra $1.3 billion over the next 18 months. We calculate this would reduce the number of loss-making providers back to the long-term industry average of 30 per cent.”
Year-on-year, the Average Net Profit Before Tax dropped from $2,095 per bed per annum to a loss of $582. The report emphasises residential care is underfunded and financial concerns cannot be overstated.
“Despite the increasing financial burden on aged care providers, the average number of care hours per resident is up while administration costs are down,’ Mr Rooney said.
“The report reflects exactly what we are hearing from providers across the nation – that without additional funding, home closures will rise and further necessary investment in the sector is at serious risk.
“We welcome the work of the Aged Care Royal Commission and the additional – mainly home care – Government funding announced after the interim report but older Australians and their care providers cannot wait until the Commission finishes its vital work to receive more support.”
The full StewartBrown report can be found here.
About Leading Age Services Australia (LASA)
LASA is the national association for all providers of age services across residential care, home care and retirement living/seniors housing. Our purpose is to enable high performing, respected, and sustainable age services that support older Australians to age well by providing care, support and accommodation with quality, safety and compassion – always.
We represent providers of age services of all types and sizes located across Australia’s metropolitan, regional and rural areas. Consistent with the overall industry profile, 56% of our Members are not-for-profit providers, 36% are for-profit providers and 8% are government providers.
Our diverse and representative membership gives LASA the ability to speak with credibility and authority on issues of importance to older Australians and the age services industry.
Contact: Nick Way 0419 835 449 firstname.lastname@example.org