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Latest aged care financial results paint grim picture in the midst of COVID pandemic

Release date: 17 Jun 2020

The latest financial figures released by accounting firm StewartBrown today show the aged care sector remains precariously placed with a majority of aged care homes operating at a loss, costs increasing and occupancy rates declining.

 

According to new data, 60 per cent of aged care facilities recorded an operating loss for the nine months to March and occupancy levels dropped to 92.1 per cent, down from 93.6 year-on-year. The numbers show that home care providers are also struggling.

Aged & Community Services Australia (ACSA) CEO Patricia Sparrow said the numbers were worrying enough on their own but even more alarming when considering the latest figures only cover the first month of the COVID-19 pandemic.

“Things are getting harder at an already difficult time for the aged care sector; our staff have been working overtime to protect older people from COVID-19, but we’re yet to receive the support required to cover increased COVID costs let alone arrest this financial decline,” said Ms Sparrow.

“Right now, we’re asking aged care operators to maintain the mental and physical health of our most vulnerable Australians and protect them from COVID-19 while many were already running at a loss.

“On top of that, these financial numbers are likely to get even worse as the pandemic continues and operators count the cost of the pandemic at its peak.”

While the rest of Australia is beginning the COVID recovery, aged care operators still need to be vigilant and try to prevent outbreaks as people move around more and visitors to residents become more frequent.

“The already troubled financial situation of the aged care sector coupled with the ongoing coronavirus pandemic shows that rescue measures are urgently needed to ensure the sector’s viability.

“The numbers show that not-for-profit aged care providers can’t be taken for granted. We’re calling on the Morrison Government to supply aged care with the rescue package required to get us through COVID and address the ongoing funding issues.”

ENDS

Media contact: Patrick Molan – 0418 173 201

As the peak body representing church, charitable and community-based organisations providing accommodation and care services to older people, people with a disability and their carers, ACSA can be contacted for comment on issues affecting the industry.

Areas ACSA may provide media commentary on include:  

  • Aged care reforms
  • Residential aged care
  • Home care
  • Independent and retirement living
  • Housing for older Australians
  • Palliative care
  • The aged care workforce in Australia

 

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