Nursing homes losing an average $14 per bed per day

One in eight nursing home beds are empty, and providers are losing an average $14 per bed per day, but believe it or not this is an improvement, new data shows

More nursing home providers are making a profit, but it remains fewer than half the sector, and the number of operators leaving the sector far outweighs those entering, new data reveals.

The federal government’s latest aged-care quarterly financial snapshot also finds one in eight nursing home beds remains empty, though there has been an improvement in the daily care minutes provided to nursing home residents during the year.

The snapshot finds 49 per cent of providers reported a year-to-date net profit before tax to June, substantially higher than the first time the government recorded this in the first quarter of 2022-23, when it was just 34 per cent.

But residential aged-care providers lost an average $13.81 per bed per day in 2022-23, it finds, an overall annual sector loss of $924m. That number might be tempered even further by some end-of-year expenses and adjustments not captured in the quarterly data, the report notes.

Aged Care Minister Anika Wells said the new numbers confirmed a more “positive outlook” as her government’s reforms, including increased care minutes and a new government funding model, took hold. “Through these reforms we are creating a stable and sustainable sector, that delivers high-quality care that older people can access when and where they need it,” she said.

Aged Care Minister Anika Wells.

The report finds profitability has improved slightly, with the number of residential aged-care providers in profit up 0.3 percentage points from the March quarter to 48.9 per cent.

But it also finds that in the June quarter 17 providers left the sector and just two joined, leaving a total of 764 residential care providers operating nationwide.

A clear improvement was on care delivery, up by four minutes in the June quarter to an average 194 minutes per resident per day, including 37 minutes for registered nurses.

From October this year homes are supposed to be providing a mandatory 200 minutes of care, including 40 minutes from a registered nurse, for each resident.

“I am particularly pleased to see care minutes increase to 194 minutes … showing that the sector average of 200 care minutes is well within grasp,” Ms Wells said.

The report notes 75 per cent of in-home care providers reported a year-to-date profit, recording an average $4.07 net profit before tax for each care recipient.

With residential care losses running at almost $1bn, the imminent report from the government’s aged-care taskforce will be closely scrutinised. The taskforce, chaired by Ms Wells, was formed in June to examine ways to make the system financially sustainable and equitable for all Australians.

It has explored proposals including having older people with the means pay more for non-care components of their care, such as accommodation and everyday living such as food and cleaning.

The report is due by year’s end.