Stewart Brown Aged Care Financial Survey reveals increasing net profits

Published on

Accounting firm Stewart Brown surveys 171 high care and 246 low care facilities on a wide range of benchmark performance metrics. Their latest report shows a positive trend with many facilities moving from operational loss into surplus territory. Here is an edit of their summary.

There has been a general trending upwards of the facility results since 2009. The average facility result across all facilities is $16.94 per bed day more than what it was at June 2009.The results for the first survey period of the year (FY2011) have followed the normal seasonal patterns with an upward surge in the facility results, with increases in the various government subsidies at 1 July 2011 and the increase in resident fees in late September. We expect the results to decrease over the remainder of the year as expenses increase. There will be some respite with a further increase in resident fees in late March 2012.

Some of the outcomes from this survey are:
• 80.1% High Care facilities achieved a positive facility result (June 2011: 65.8%)
• 89.5% High Care facilities had a positive EBITDA (June 2011: 84.4%)
• 77.6% Low Care facilities achieved a positive facility result (June 2011: 63.8%)
• 89.8% Low Care facilities had a positive EBITDA (June 2011: 86.3%)
• 78.7% of all facilities in the survey achieved a positive facility result (June 2011: 64.6%)
• 83.9% of facilities in this survey (June 2011: 73.4%) made an overall profit taking into account all sources of income and expenditure. This is also higher than the ratio of 65.0 % at June 2010

Share.

About Author

The Weekly SOURCE is the leading media for retirement living and aged care businesses, delivering sector-specific news through four mastheads. Operating as part of The DCM Group, The Weekly SOURCE also provides a directory of proven sector specialists and an insights exchange.