Financial Strain Deepens for Aged Care Amid Reforms, StewartBrown Report Finds

Jan 24, 2025 | Aged Care, News

The Australian aged care sector faces growing financial and operational challenges, as highlighted in the StewartBrown Aged Care Financial Performance Survey Report from September 2024.

Residential aged care homes reported an average operating loss of $8.45 per bed per day, with 59% reporting that they are running at a deficit, driven by rising costs and mandatory 24/7 registered nurse requirements. While occupancy rates increased to 93.8% and AN-ACC funding rose to $280.01 per day, everyday living and accommodation services remain unprofitable, and regional facilities struggle to attract investment.

The report recommends reforms such as increasing the Hotelling Supplement, revising MPIR methodology, and addressing labour costs to ensure long-term viability.

Read the full report here.