‘Simply unsustainable’: Three out of four regional aged care homes making operational loss

Almost three-quarters of regional aged care homes are running at an operational loss, with the industry describing it as “simply unsustainable” and warning the workforce shortage crippling the industry was even worse in the bush.

Aged Care Anika Wells Minister. Picture: NCA NewsWire / Martin Ollman

Almost three-quarters of regional aged care homes are running at an operational loss, with the industry describing it as “simply unsustainable” and warning the workforce shortage crippling the industry was even worse in the bush.

Some providers are even turning to fly-in, fly-out workers to get enough staff, adding to unsustainable costs.

It comes as the Albanese Government presses ahead with the requirement for all residential care facilities to have 24/7 nursing onsite, as recommended by the Aged Care Royal Commission.

Data released last week showed 86 per cent of residential aged care homes had achieved the 24/7 nursing requirement, with just 37 being granted an exemption and a further 17 being assessment for one.

Aged Care Minister Anika Wells said the Albanese Government was spending $11.3 billion to fund a payrise for aged care workers, including 60,000 in Queensland, which would help improve workforce numbers in regional areas.

But analysis in accountancy firm Stewart Brown’s quarterly aged care financial performance survey showed 74 per cent of aged care homes in inner regional areas were making an operating loss, compared to 60 per cent in major cities.

Aged and Community Care Providers Association CEO Tom Symondson said attracting and retaining workers remained the biggest issue faced by aged care providers in regional and remote parts of the state.

“Some regional providers are being forced to use fly-in fly-out carers, substantially adding to costs,” he said.

“The whole aged care sector is struggling financially … (and) we know that regional providers are particularly vulnerable due to higher cost pressures.”

He said there was a shortage of about 12,000 registered nurses in the country.

Aged & Community Care Providers Association CEO Tom Symondson. Picture: Supplied

“We need to ensure we have the right levers and supports in place, so that providers can bring more RNs into Australia,” Mr Symondson said.

Ms Wells said the government’s own financial snapshot of the sector showed profit margins for regional homes had increased slightly in the past quarter,

“The Albanese Government recognises the unique challenges of rural and remote aged care and is determined to ensure residents have dignity regardless of where they live,” she said.

“(It) has spent $11.3 billion dollars to fund a historic and deserved pay rise for aged care staff and this will especially help improve workforce numbers in regional areas.”

Government programs to attract more regional nursing staff include the Rural Locum Assistance Program, which provides incentives for permanent placements in rural areas, as well as Aged Care Registered Nurses’ Payment to attract and retain registered nurses.