The number of residential aged care providers making a profit has decreased by 12 percentage points to just over half, says the Aged Care Financing Authority (ACFA) 2017-18 report.
After five years of steady improvement, the overall financial performance of RAC providers declined in 2017-18, and the number of providers making a net profit fell from 68% in 2016-17 to 56% in 2017-18.
ACFA also found a significant reduction in total profits among providers in 2017-18 ($435 million) compared to 2016-17 ($1,006 million).
Furthermore, the report highlights the gradual shift in residents choosing to pay for aged care through Daily Accommodation Payments (DAP) rather than Refundable Accommodation Deposits (RAD).
The proportion of residents paying a RAD fell to just 37% in 2017-18 down from 43% in 2014-15 (pictured in graph), while the proportion of residents paying by DAP increased from 33 to 40% between 2014-15 and 2016-17 – and remained there in 2017-18.
Some more important stats from the report:
Government spending
- $18.1 billion, up from $17.1 billion in 2016-17
Residential aged care services
- Care providers down from 902 in 2016-17 to 886
- Resident contributions were $4.5 billion
- Average occupancy of 90.3%, down from 91.8% in 2016-17
Access the full report HERE.
