Australia’s aged care sector is in the midst of drastic reform and uncertainty due to a combination of the Royal Commission, policy updates and public scrutiny.
This has been reflected in the Aged Care Funding Authority’s 2019 report on the funding and financing of the aged care industry.
The last financial year saw a “significant deterioration in the financial providers” as the EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) fell below 60%.
Similarly, residential care saw EBITDA per resident fall by 24% and 44% of residential care providers reported a loss.
The decline in the performance of residential aged care providers has largely been attributed to the Governmental changes to the Aged Care Funding Instrument (ACFI) that took effect over 2017 and 2017.
Download the high res version here: Finance-in-Aged-Infographic-1.pdf (18 downloads)
Learn more about the Financial Transformation in Aged Care Conference here.