Stuart Hutcheon (pictured) and Grant Corderoy, partners at StewartBrown Accountants, have raised the alarm on the growth in aged care overheads.
They have just surveyed 73 operators and found that corporate administration costs as a percentage of revenue is rising at the same rate as revenue.
The operators surveyed held 20,414 aged care packages plus run 501 care facilities and 21,511 retirement village units.
StewartBrown conducts the longest running benchmarking survey for the sector plus they audit and consult to operators across the country. They have the best insight into the sector.
This warning is timely as CDC opens competition which is already leading to pricing pressures with the likes of Better Caring delivering disruptive economies of scale. They have collected over 600 carers under their brand in the past 16 months and offer home care services as low as $25 per hour. This compares to an average of $45 per hour for the sector (or more).
To get more info on the StewartBrown surveys email them HERE.
