Bupa Aged Care delivers $71M loss – occupancy 85%

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Australia’s largest aged care operator delivered the $71 million loss on top of a loss of $52 million in 2019, bring in the total across the two years to $123 million.

Revenue fell 4% to $583 million, with occupancy at just 85%, which was a slight increase from 84% in 2019.

Contributing to the loss in 2020 was a $6 million fine and $18.3 million compensation payment (total $24.3 million) made to past and present residents for charging for services it had not provided.

Bupa self-reported the overcharging when it was discovered and had already commenced repayments when the Australian Competition and Consumer Commission (ACCC) took it to the Federal Courts.

The extra services charged to over 600 residents but not delivered included individually controlled air conditioning, dementia specific rooms, talking book libraries and hot breakfasts. The period was 2013 to 2018 across 20 of the then-reported 78 Bupa locations.

In 2020 they had the additional cost of COVID, especially with 26 locations in Victoria.

In 2019 the group suffered an unprecedented 13 sanctions, with five still in place at the beginning of 2020, with no new sanctions in 2020.

They said: “The majority of the loss occurred in the first half of the year as second half performance significantly improved through continued progress of the business’s strategic transformation initiatives.”

“Throughout the year, the group made significant improvements in its operating model and addressed previous compliance issues.”

The tough 24 months has led to closing its Cardiff (NSW) home, and the sale of two homes in the ACT, plus another in Hobart.

It is understood they plan to close another four this year.

They now have 68 locations on their website.