An unpublished independent research report into the financial viability of residential services in rural and remote regions of New South Wales found that generally residential aged care services in remote areas are operating with both operating and net losses due to a range of extra costs including the following:
- The small population on which to draw their client base results in a resident mix with a higher proportion of lower dependency residents and hence lesser funding;
- Unfavourable occupancy levels sometimes influenced by other residential aged and community care services within the same client catchment areas;
- Lower than average Accommodation Bond levels and in some cases no capacity to charge a bond or charge due to the family home being unsaleable;
- Having to maintain staffing levels that are not necessary when the resident profile changes;
- Higher staff recruitment, retention and training costs;
- Higher costs for insurances, medicines, incontinence aids, laundry, food and maintenance.”
CHA members confirm that these remain as principal triggers affecting financial performance of residential aged care providers.
Please follow this link to read the submission.