Estia calls for quicker reforms amid decline in aged care finances

Estia Health has pushed for “timely” reforms in the wake of the royal commission into aged care.

A shot of Estia aged care facility in Kensington Gardens. Picture: Tricia Watkinson

Aged care provider Estia Health has warned of the need for “timely” reform of the sector, arguing that a decline in financial performance in the industry makes the issue “more pressing”.

Ian Thorley, chief executive of Estia (EHE), which reported an annual profit of $41.3 million today, said it had been one of the most challenging periods for the aged care sector.

He outlined that as well as facing a challenging funding environment, the sector had been responding to the Royal Commission into Aged Care Quality and Safety and preparing for the introduction of the new quality standards that came into effect on July 1.

“Estia is strongly supportive of further reform and implementation of key recommendations from multiple recent reviews in the sector designed to deliver a sustainable, high quality aged care sector which meets society’s expectations of care with what it is willing and able to pay,” Mr Thorley said.

“The timeliness of reform becomes more pressing as sector financial performance continues to decline.

“We are well prepared for the introduction of the new quality standards, with additional investment in quality management and resident care systems including staff education, technology development, customer engagement and service,”

Estia, one of Australia’s largest aged care providers, today reported that its revenue was up 7.1 per cent at $586m. Its average occupancy rate was 93.6 per cent for the year, with an increase in spot occupancy to 94.1 per cent at August 16,

The company declared a fully franked full year dividend of 15.8c-per-share.

“While funding is not keeping pace with rising operating costs and the need to continually improve resident care, we continue to increase revenue through ongoing refurbishments and measured, well-executed growth in response to growing community demand,” Mr Thorley said.

“We continue to refine our strategy and focus in relation to occupancy which will become increasingly important in an environment of heightened competition, and increased customer expectations.”

The Australian-listed company outlined that during the year it invested $93.8m of capital in expanding and enhancing its home portfolio, its highest level of capital investment since listing in 2014.