Leading Age Services Australia (LASA) has released an independent study that shows ACFI changes in the last budget will generate residential aged care by:
July Dec 2012 $98 million losses
2013 $300 million losses
2014 $353 million losses
LASA CEO, Gerard Mansour, says the losses grow as more residents get assessed under the new rules. The average loss per resident will be $56-63 per day. If correct this will wipe out all profit in residential aged care, given the Stewart Brown survey states the top quartile return of 500 facilities surveyed was $43.65 profit per day. LASA wants the Government to add a further $1.1 billion for bricks & mortar aged care over the next four years plus a 1.6% annual increase in ACFI rates. The LASA study had a sample of 275 care facilities with 18,345 residents.
Mergers & Acquisitions
Brookfield sells retirement village operator Aveo for $3.85B
Brookfield Asset Management, a leading global alternative asset manager headquartered in New York with over US$1 trillion of assets under management, has agreed to sell its retirement living platform, Aveo, to The Living Company for A$3.85 billion...
