Data suggests profitability will increase”: Are we over the worst in aged care?

In an interview on A Current Affair this week, Aged Care Minister Anika Wells said, “All the data suggests that profitability [for residential aged care providers] will increase at the next round of reports.”

Though the Minister’s office told The SOURCE they are still waiting for the data to come through, could this mean the aged care sector is finally turning the corner? The financial pressures among aged care providers are well known, particularly for small operators. Providers Wesley Mission and Brightwater Care Group have recently closed three homes each, due, in part, to the challenging financial environment. The Government’s Quarterly Financial Snapshot of the Aged Care Sector showed that in the September quarter, residential aged care homes recorded a loss before tax on average of $29.90 per resident per day. The next report will likely be released in the second half of May. Since the September quarter, AN-ACC was introduced (on 1 October 2022), which is intended to deliver funding based on the cost of care. Last week, the Minister and Treasurer Jim Chalmers released a statement saying aged care funding will rise 23% this financial year, from $24.8 billion to an estimated $29.6 billion. Will the Government’s next Quarterly Financial Snapshot show – at long last – an improvement?