Aged Care Operations report highlights consolidating sector

The Government's 25th Report on the Operation of the Aged Care Act was released last week, showing the number of residential aged care providers continues to decline, falling 5% over 2022-23 to 764 providers, and over two years dropping 8%. The 144-page report reveals that approximately 1.5 million Australians received aged care services last year, costing the Federal Government $28 billion. The Government's greatest aged care expense is residential aged care, which makes up $16.1 billion or more than half of the funding with just over 250,000 users. More Australians (315,000) used home care services, but home care services cost the Government less than one third the cost of residential services at $5.6 billion. The Government's target ratio for subsidised aged care places, the provision ratio, was 72.8 operation aged care places for every 1,000 people aged 70 years and over. By contrast, in the May 2023 federal budget, the provision ratio was reduced to 60.1 places. The average age on entry to residential aged care was 83.5 years for men and 85.3 years for women. The average length of stay in residential aged care was 35 months. Average occupancy has fallen from 93% in June 2011 to 86% as of 30 June 2023, steady with occupancy last year. In the 2023 financial year, 52 residential aged care providers accessed the Business Improvement Fund (BIF), receiving in total $28 million. In 2020-21 and 2021-22, 201 providers accessed the (BIF), receiving more than $100 million. Structural Adjustment Fund grants went to 14 residential aged care providers, including 11 grants to help transition or sell to a new operator, and three grants to close. You can read the report in full here.