Aged Care Investors

Aged Care Investors Penalised

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“The recent release of the Grant Thornton analysis of the aged care industry is proof positive that reform of the current system is essential,” said Rod Young, CEO, Aged Care Association Australia (ACAA). “The current scheme punishes providers who have responded to Government and community demand that they invest in superior buildings with quality fittings and furnishings,” said Mr Young. Grant Thornton who undertook the largest private survey of aged care providers with over seven best aged care facilities participating clearly shows it is more profitable to run a multi bed room than a single bed room.

“EBITDA of $2,191.00 for a single room whilst a multi bed room achieves an average EBITDA of $4,233.00 per annum clearly shows that stated Government policy of improved infrastructure and the financial drivers imposed by Government are working in opposite directions,” said Rod Young. “In other words, be part of the $1.5B annual infrastructure investment in aged care and the chances are you will end up losing money,” Mr Young said. “You will certainly make less money,” said Mr Young, “with facilities built prior to 2000 achieving an average per annum net profit of $1,036.00 per bed and those built after 2000 (predominantly single room, ensuite accommodation) averaging a net loss of $584.00 per bed per annum.”

AgeWell RoadShow

AGED CARE FUNDING INSTRUMENT

ACFI INDUSTRY ADVICE
The introduction of the Aged Care Funding Instrument (ACFI) on 20th March 2008 represented one of the biggest changes in residential aged care since the passing of the Aged Care Act in 1997. Many person hours of effort from the Government and from industry representatives and stakeholders has gone into the design of ACFI and making its introduction as smooth as possible.

The information presented through the links below has been developed by ACAA and ACSA. It is intended to complement that produced by the Department of Health and Ageing and a link to their web site may also be found below. Presenting issues, questions and other material from an industry perspective will aid understanding of the ACFI and assist in collecting information to support any changes which may be required as implementation proceeds.

Feedback on this site and the information contained within it is welcome and should be directed to info@agedcareassociation.com.au or through your State Association.

Contact Us

Aged Care Association Australia (ACAA)
Level 1
32 Napier Close
Deakin ACT 2600

PO Box 335
Curtin ACT 2605

T: 02 6285 2214 or 08-9409 7098
F: 02 6281 5223
E: info@agedcareassociation.com.au