SA nursing homes financially struggling as virus health crisis grows

More than half of SA’s aged care homes were buckling under financial pressure even before coronavirus, a new report shows, sparking new fears for residents’ care during the health crisis.

• Social distancing impossible for teachers left short
• How to get the most from your Advertiser subscription

Aged cares homes across South Australia are being squeezed to the brink of financial ruin, putting the care of elderly residents at risk during the COVID-19 pandemic, a new report shows.

Analysis by accountants StewartBrown reveals almost two-thirds of facilities in SA were unprofitable on average over a six-month period.

The 5 per cent rise in the number of struggling nursing homes to December hit prior to the economic blow from the coronavirus.

One Brompton facility, sanctioned last year due to severe risks to the health and safety of residents, has revealed it is now more than $1 million in the red.

The peak aged services body said the situation in South Australia was alarming, and was putting crucial care at risk during a health crisis. Nationally, more than half of 1060 aged care homes surveyed recorded an operating loss during the six-months to December.

Out of 109 SA providers surveyed, 69 were operating at a loss over that same period.

Inner regional homes across the state were the hardest hit, with 10 of 12 facilities surveyed in deficit. This dropped to three quarters of aged care facilities in outer regional areas, and 58 per cent in metropolitan Adelaide.

The startling report reveals a “significant decline” in the financial performance and sustainability of the residential aged care sector.

“The mix between appropriate staffing and revenue will dictate the ongoing financial performance of the home care sector,” the report states.

MORE NEWS

Hundreds of new health workers to trace virus contacts

New battleground as home loan rates fall even lower

At St Anna’s Residential Care Facility in Brompton, the 60-bed facility lost six months of subsidies for new residents last year as a penalty for its noncompliance in clinical care.

Amanda Birkin came on as chief executive of Croatian, Ukrainian and Belarusian Aged Care Association of SA after the sanctions.

She said they have increased staffing, including having registered nurses 24 hours a day. “We’re over $1 million (in debt) this financial year,” she said.

Ms Birkin said government funding didn’t cover staff wages – up to 70 per cent of overall costs – and making end of life meaningful for residents.

The Federal Government in March announced $444 million for the aged care sector.

But the report authors warn the funding may not sufficiently cover the additional “operational and regulatory burden” to ensure residents are protected from the virus.