LASA commissioned report says new ACFI changes will cost the sector $98M in the next 6 months … and growing

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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.