Leading Age Services Australia (LASA), the voice of aged care, says the latest report on the financial performance of the aged care sector, showing worsening financial results for the sector, puts more pressure on the Government to boost funding to the industry as a matter of urgent priority.
The Aged Care Financial Performance Survey, by industry analyst StewartBrown, shows the current funding model remains under significant strain with underlying year on year results for both residential care and home care indicating a continued decline in financial performance.
The report – for the nine months to March 2019 – says residential care is underfunded, with more than 45 per cent of facilities now operating at a loss, while in regional, rural and remote locations the figure is greater than 67 per cent.
It says home care also experienced a continuing financial performance decline and says the level of unspent funds continues to be the biggest single issue in relation to home care packages.
LASA Chief Executive Officer Sean Rooney said it was significant that the report warned that further deterioration in performance will render some residential care homes financially vulnerable, potentially affecting the sustainability of some provider organisations.
“This report highlights the need for urgent funding relief to address the increasing demand for services and acuity of residents, while the work on longer term sustainable funding arrangements is being undertaken,” he said.
“We have long been advising the Federal Government of the impact on residential care providers of the combination of rising operating costs and stagnant revenues from government.
“Now, with the financial viability of so many aged care providers at risk, it is not unreasonable to expect that Australia’s aged care system is adequately funded to be sustainable and to meet the needs of older Australians.
“The Prime Minister said just the other day that aged care would be one of his government’s priority areas of focus – now he needs to demonstrate that by taking urgent and meaningful action to ensure providers of aged care adequately funded to meet the needs of frail and vulnerable older Australians.
“Aged care is an issue of national importance and older Australians deserve a sustainable and world class aged care system, and that means world class funding.”
The Age Care Financial Performance Survey can be accessed here: http://www.stewartbrown.com.au/news-articles/26-aged-care/181-march-2019-aged-care-sector-financial-performance-survey
About Leading Age Services Australia (LASA)
LASA is the national peak body representing and supporting providers of age services across residential care, home care and retirement living. Our purpose is to enable a high performing, respected, and sustainable age services industry delivering accessible, affordable, quality care and services for older Australians.
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, 57% of our Members are not-for-profit providers, 33% are for-profit providers and 10% 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: David O’Sullivan Ph 0427 138 024 E firstname.lastname@example.org