“Low Profits in Aged Care – Why?” March 11, 2010
Posted by Christian in Uncategorized.add a comment
A recent study by Bentleys into Aged Care in Australia found that the average net profit margin for over 340 participating facilities was just 4.46% (2009 National Aged Care Financial Survey).
For some time it has been well recognised that funding is inadequate, but if the Rudd Government does increase funding to the Aged Care industry as part of its proposed National Health and Hospital Network Reform, will this improve on current levels of profitablity?
Is increased funding likely to turn around the unacceptable levels of profitability currently afflicting Aged Care facilities?
Simply throwing money at the industry may give the appearance of doing something about the problem, but it won’t resolve the underlying issues contributing to low or even negative profit margins.
We submit that low profitability is largely attributable to deeper issues, internal to the facilities themselves.
Putting the spotlight on the causal factors of low profitability is a vital first step for you to come up with better solutions.
If you are involved in the management of an Aged Care facility, complete the [anonymous] poll below – rank the top 3 profit/quality killers at your facility,
If you would like us to email a copy of the Profitability in Aged Care Report, please contact us.
Christian
