The StewartBrown Aged Care Financial Performance Survey incorporates detailed financial and supporting data from over 830 residential aged care facilities and 420 home care programs across Australia. The quarterly survey is the largest benchmark within the aged care sector and provides an invaluable insight into the trends and drivers of financial performance at the sector level and at the facility or program level. Click here to access the Residential sector report for September 2017 Click here to access the Home Care sector report for September 2017 For more information on the Aged Care Financial Benchmark Survey click here.

The StewartBrown Aged Care Financial Performance Survey incorporates detailed financial and supporting data from over 950 residential aged care facilities and 500 home care programs across Australia. The quarterly survey is the largest benchmark within the aged care sector and provides an invaluable insight into the trends and drivers of financial performance at the sector level and at the facility or program level. Click here to access the Residential sector report for June 2017 Click here to access the Home Care sector report for June 2017 For more information on the Aged Care Financial Benchmark Survey click here.

We recently conducted the 2017 Corporate Administration Survey and had a response from a large number of aged care providers covering 457 residential care facilities with 35,164 operational places, 12,972 home care clients and 15,395 occupied independent living units. Across the 58 organisations that submitted data, revenues totalled $4.8 billion and aggregated total assets were a total of $15.8 billion. The number of FTEs in these organisations totalled 36,135. The survey shows that corporate administration costs continue to increase at a rate greater than the increase in revenue, with a particular increase in corporate administration staff costs. Organisations are on average spending 15.39% of their operating revenues on the administration of their business. Further analysis on the composition of corporate administrations costs and analysis by different characteristics such as locations, net assets, revenue type are set out in the attached report. Please click here to download the report

Want to know what the latest trends are for aged care providers? The StewartBrown Aged Care Financial Performance Survey (ACFPS) incorporates detailed financial and supporting data from over 479 Home Care programs and 869 residential aged care facilities across Australia. The quarterly survey is the largest benchmark within the aged care sector and provides an invaluable insight into the trends and drivers of financial performance at the sector level and at the facility or program level.

It could be said that from the initiation of the new Aged Care Funding Instrument (ACFI) in March of 2008 that the aged care sector was in a ‘revenue phase’ that saw the cumulative Care Income grow to 71% at March 2017 as shown in Figure 1. FIGURE 1 Cumulative revenue Now there will be a number of people who may see this figure and suggest that providers have done very nicely out of this growth, but while the revenue grew, so did the costs. For example Care Wages grew more than 75% in the same time period. During this same period the Care Result (care revenue minus care expenses) grew from $4.40 per bed day in June 2007 to a sector high of $14.92 in September of 2011. Then the first fiscal cliff appeared as the government looked to reign in the growth of their share of care revenue, so that by June 2013 the Care Result had fallen back to $6.79 per bed day. Figure 2 Cumulative income expenditure As this new reality dawned on providers they adjusted and reached a second precipice of September 2015 where $12.56 was the Care Result until another fiscal cliff has resulted in a March 2017 Care Result of $9.93. As we see ACFI income reduced in real terms we are not seeing the escalation of costs ease in the same manner, presenting a pressing cost management environment providers must now deal with. The combination of income stagnation and a continued escalation of expenses indicates that cost management is a key focus item for providers and is the key differentiator between the top quartile and the remaining 75% of the sector in the Aged Care Financial Performance Survey. Although all providers saw upward pressure on expenses during the 12 months to March 2017 Table 1 below highlights that revenue is relatively even across the industry with only $1.76 per bed day separating the top and bottom quartiles. To underscore this point for the residential segment, we can see that the Care Revenue for both the top quartile and bottom quartile is almost line ball in terms of quantum with only expenses being the differentiator. Table 1 Revenue Expenditure comparison However, as the table wonderfully highlights, the top quartile performs significantly more efficiently in managing their cost base and provides the engine room for the strength of their consolidated result. So in both Home Care and Residential Care the importance of understanding our cost drivers is critical to the sustainability of aged care businesses as a whole. As the reform program continues we can expect that a number of possible changes will push providers to consider their approach to: More consumer choice in home and residential care Publishing their prices for care and everyday living services (residential and home care) A deregulated price environment to accompany price transparency A single funding instrument based on assessed needs (across home care and residential care) An independent assessor of client need and therefore funding amounts When combined with the existing changes, the market forces inherent in the reform roadmap will require a contemporary aged care provider to be: Market/consumer driven Flexible and adaptable to a changing market Targeting the consumers it wishes to serve Productive and efficient, in both direct and indirect services Able and prepared to put capital to work Business focused; and of course, Will need to make a profit or surplus to be sustainable In order to ensure providers are able to manage their controllable costs they will need to understand the cost levers within the business and how they impact on the overall result. Although it is challenging to start it will be imperative that providers grasp the importance of knowing their units of service at a granular level. This granulated approach will allow staff and management to monitor performance and keep people accountable for the outcomes required to achieve the very necessary profit or surplus for the business. Once attained these units of service can be combined in standard or non-standard ways to produce the services that consumers want while allowing the business to set appropriate, and in some cases premium, selling prices for the outcomes attained. Naturally, StewartBrown encourage the use of benchmarking to drive improvements in financial and operational performance, adding another layer of accountability, insight and trend identification that will assist providers with achieving the right care mix; at the right time and at the right price for all parties.

The StewartBrown Aged Care Financial Performance Survey incorporates detailed financial and supporting data from over 865 residential aged care facilities and 475 home care programs across Australia. The quarterly survey is the largest benchmark within the aged care sector and provides an invaluable insight into the trends and drivers of financial performance at the sector level and at the facility or program level. Click here to access the Residential sector report for March 2017 Click here to access the Home Care sector report for March 2017 For more information on the Aged Care Financial Performance Benchmark Survey click here. If you are interested to join our survey, contact Vicky Stimson on (02) 9412 3033 or This email address is being protected from spambots. You need JavaScript enabled to view it.

Wednesday, 14 June 2017 09:00 - 16:00 Novotel Sydney Central 169-179 Thomas Street, Sydney, NSW, AU Home Care – what are your future business plans in these uncertain times? What opportunities are there? What do HCP and CHSP providers need to do to ensure financial and operational success? Do you want to hear what others are doing? Now that The Department of Health has informed providers that CHSP funding will be extended until 2020, this seminar is the perfect opportunity for CHSP providers to set up their business models for the future. This joint seminar with Lorraine Poulos & Associates and Stewart Brown has been designed to assist you in managing the operational and financial changes needed to survive and prosper in an uncertain but exciting environment in aged care. It is an opportunity for finance and operational staff to be working together to meet the changing environments. As usual the seminar will be interactive and provide you with practical advice and resources to implement in your organisation with facilitated discussions. David Sinclair and Patrick Reid from Stewart Brown will provide valuable insights and recommendations regarding financial management and Lorraine Poulos will provide practical examples of strategies to consider implementing for quality and sustainability. This seminar is the most beneficial seminar you could attend this year. If you provide Home Care; Retirement, Residential or NDIS services then this seminar is for you. New providers will hear what successful providers are doing to maximise profitability and prepare for the future. There are many lessons to be learnt from home care for the residential and retirement sectors of aged care and these will be highlighted throughout the day. Lorraine Poulos & Associates and Stewart Brown will facilitate discussions and provide extensive USB resources that will all be linked to the Aged Care Road Map Destinations. Testimonials: “One of the best seminars I have attended. Very well organised, great materials presented and very practical.” Rina Indriani Salvation Army “The workshop was excellent. All presenters gave relevant information and feedback in easily understood terms” Karen Patterson-Kane SBCare Target audience: CEOs, Finance staff, managers, co-ordinators, Board Members and new providers. Organizer: Lorraine Poulos and Associates Open Home Care Finance and Operational Seminar - Joint LPA and SB event - Hard times in Home Care? Fact or Fiction? at Eventbrite.co

The StewartBrown Aged Care Financial Performance Survey incorporates detailed financial and supporting data from over 830 residential aged care facilities and 455 home care programs across Australia. The quarterly survey is the largest benchmark within the aged care sector and provides an invaluable insight into the trends and drivers of financial performance at the sector level and at the facility or program level. Click Here to access the Organisation report for December 2016 Click Here to access the Residential sector report for December 2016 Click Here to access the Home Care sector report for December 2016 For more information on the Aged Care Financial Benchmark Survey Click Here. If you are interested to join our survey, contact Vicky Stimson on (02) 9412 3033 or This email address is being protected from spambots. You need JavaScript enabled to view it.

We are pleased to release our sector update on the September 2016 survey which follows the individual participant reports issued prior to Christmas. In keeping with tradition we have kept the September updates relatively brief and will be readying ourselves for a more extensive report on the half yearly December 2016 survey. Click Here to access the residential sector report for September 2016 Click Here to access the home care sector report for September 2016 We will also be beginning a newsletter service to provide regular insights into specific areas of focus or trends that we see developing in the data that will be of some interest to providers and the sector generally. The new year will see us making some further enhancements to this service and we will be bringing news of that to you all soon. For more information on the Aged Care Financial Benchmark Survey click here. If you are interested to join our survey, contact Vicky Stimson on (02) 9412 3033 or This email address is being protected from spambots. You need JavaScript enabled to view it.