Two-thirds of homes in outer regional, rural and remote areas across the country recorded negative earnings before tax for the quarter ending September 2019 – an increase of 6% on the previous year, according to the accounting firm’s latest Aged Care Financial Performance Survey Rural and Remote Results Summary.
The report – which analysed the financial results of 95 homes – shows another 47% recorded a cash loss, up from 40%.
In contrast, major cities had losses of 47% and 22% respectively across 640 facilities.
The report found rural and remote homes are at a greater disadvantage because of their smaller size (most were less than 40 beds), lower potential resident cohort, difficulty in attracting staff, lower RADs and higher costs of food, consumables and maintenance.
Interestingly, country homes still recorded 3.31 care hours per resident per day, higher than city and inner regional areas.
As we covered here, Minister for Aged Care Senator Richard Colbeck recently announced a $50 million Business Improvement Fund to assist providers to fix their management and IT systems, transfer ownership or shut down – with the grants to be targeted towards those in rural and remote areas and in bushfire-affected areas.
How many of these facilities are considering applying?
You can download the report HERE.