Latest Stewart Brown aged care performance survey
Aged Care Association Australia (ACAA) has welcomed the release of the Stewart Brown Aged Care Performance Survey for period ending 31 March 2009.
“The report confirmed long held claims by the industry that financial viability of the sector is severely threatened unless Government agrees to address some of the underlying issues driving down industry profitability,” said Rod Young, ACAA chief executive officer.
The Stewart Brown quarterly surveys were relied upon by Government during the recent Senate Enquiry into Residential and Community Aged Care to demonstrate a financially healthy sector.
Mr Young claims however that this report shows the result by funded facility has declined from $3482.00 to $3061.00 per bed per annum between 30 June 2008 and 31 March 2009. A decline of $421.00 per bed per annum or nearly 14%.
“What is even more alarming, is that at these levels of return, an aged care provider forced with outlaying an average $176,000 to build one aged care place will wait 57 years to receive a pay back.
“A 57 year wait to receive a return on your investment whether you are a not-for-profit or a for-profit organisation; is hardly an attractive investment option,” Mr Young said.
“It is essential Government recognises the industry’s capital creation problems and agrees to change the current scheme to ensure our industry continues to invest to meet future demand which on every body’s calculations will double over the next 25 years,” he said.
