Private Vs Not For Profit aged care profits questioned

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The ANMF tax study is interesting but focuses only on the big private operators with the overriding (negative) message that they are making profits out of government funds.

It is worth visiting the StewartBrown benchmark survey, the last available being to December 17.

With just 5% of the organisations contributing the data for benchmarking being private operators, the results reflect the performance of the Not For Profit sector.

The chart above shows the performance of the top 25%, being 229 RAC facilities.

In summary, the average EBITDA result was $17,760 per bed per year, delivered from a combination of government funding and resident funding.

The government’s ACFI funding average $175.81 per day or $64,170 a year. Therefore their EBITDA result of $17,760 equates to 27.7% of the government ACFI funding.

Being Not for Profits, these top 25% operators do not pay tax on their surplus.

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