More residents choosing to pay a DAP than a RAD: ACFA report

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The number of consumers opting to pay a Refundable Accommodation Deposits fell to 38% in 2016-17, down from 43% in 2014-15 and 41% in 2015-16, according to the latest report from the Aged Care Financing Authority (ACFA).

Meanwhile the number choosing to pay the Daily Accommodation Payment was at 40% in 206-17, up from 33% in 2014-15.

This is likely to be a challenge for providers to fund.

Profits also continue to creep down, with 68% of providers recording a profit in 2016-17 compared to 69% in 2015-16 and total profits falling from $1,006 million in 2016-17 from $1,063 million the previous year.

Interestingly, the report highlights that just 25% of aged care workers have been in the sector for over 14 years – the workforce is also getting younger with the average age falling from 48 in 2012 to 46 now.

The section on capital investment also has some interesting insights. Total liabilities for the sector are now $33.7 billion, up from $29.8 billion – including $24.8 billion in RAD deposits.

But the higher accommodation supplement for new and refurbished facilities that came in on 1 July 2014 is doing its job, with $2.1 billion of new construction work was completed in 2016-17, compared with $1.6 billion in 2015-16.