Stephen Rooke (pictured top), Principal Consultant with advisory firm G5 Strategic, puts it bluntly about building a new residential aged care home in the 99th issue of SATURDAY magazine, released to subscribers last Friday.
“Any new facility built today needs to be a certain size to make enough margin to repay the construction cost," Stephen said.
“With tight operating margins built into the funding model, smaller services simply don’t have the financial runway for redevelopment unless multiple favourable factors align.”
According to Stephen, providers need at least two of three conditions to justify building new – find out what they are in the latest issue.
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