The average revenue per client per day has fallen by 5.03% to $3.70, based on the accounting firm’s survey of 21,400 home care packages from 401 home care providers.
The Earnings Before Tax (EBT) per client day has fallen by $2.13 to $3.24 per client per day – figures StewartBrown attributes to providers trying to price their products more competitively to deal with the influx of new operators and greater awareness of pricing by clients after the introduction of Consumer Directed Care (CDC).
Unspent funds per client have also increased by $1,157 per client to $5,412 – a serious concern as providers will lose out on revenue.
“It appears that clients are choosing to save their funding for some future event – be it for increased direct care in the future or for capital purchases to assist their care requirements,” StewartBrown says.
They say more education is needed for consumers, and more improvements to the system including the Federal Government’s MyAgedCare site, to encourage clients to use their unspent funds which would otherwise get used for capital purposes or returned to Medicare once they depart.
Given the financial pressure providers are under, we have to agree.
Read the full report here.