There is now $2.1 billion of unspent funds from Home Care Packages (HCP) across Australia, according to StewartBrown’s latest Aged Care Financial Performance Survey Report.
The average unspent fund per client has risen to $10,736 per client.
“You (operators) have the opportunity to change the narrative. Charge higher prices for your services,” said Grant Corderoy, Senior Partner at StewartBrown.
He said 96% of those unspent funds are returned to the Australian Government.
“Those funds meant for aged care are never utilised,” he said.
“Charge the commensurate fee for the service being delivered. Have the courage to do it.”
The revenue utilisation from HCP has fallen by 2.3% to 85%.
“Revenue has decreased. A drop in charges for the services. Why is that?”
StewartBrown’s Aged Care Financial Performance Survey Report found:
- Revenue per client per day (pcpd) average for survey participants ($68.98 pcd) decreased by 4.3% (being a $3.10 pcpd decrease)
- Average operating profit per client day decreased by $2.07 pcpd to $3.98 pcpd (FY21 $6.05 pcpd)
- Direct service costs decreased by $1.66 pcpd (0.2% increase as percentage of revenue)
- Revenue utilisation has decreased by 2.3% to 85.0% (FY21 87.3%)
- The average unspent funds per client has increased to average $10,736 per client (FY21 $9,855 per client)
- Staff hours per client per week reduced by 0.08 hours (average 5.28 hours per week)
- Case management cost as a percentage of revenue has increased (11.8% of revenue for FY22 compared to 10.5% of revenue for FY21)
- Administration and support costs represent 23.1% of revenue which is an increase from FY21 at 22.0% of revenue
A further 40,000 home care packages, each valued at up to $53,268.10 a year, will be released over the coming months.
