Nearly 50% of aged care facilities in the red, research says​

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Government data obtained under Freedom of Information laws by Canberra business expert Dr Richard Cumpston shows of about 880 unidentifiable facilities nearly 390 saw losses in the 2017-18 financial year. 

A further five broke even across all areas, while nearly 55% of 350 regional-only providers ended the year with more spent than gained.

The worst-affected claimed it was an average of nearly $500,000 out of pocket for each of its residents.

Others at the high end of the scale reported gaps from $300,000 to $100,000 between their average spend on residents and the income each received.

Canberra Aged Care Facility director Clayton Hutchinson says “We’re all holding our breath for more funding, and just waiting for the Government to act.”

He says “90 providers left the industry last year, it’s becoming commonplace.”

The data for all facilities reflects aged care accountancy firm StewartBrown’s findings in March 2019, which showed 45% were running at a loss.