We work with providers to:
- understand their financial issues
- assist them to plan and develop options to manage issues and reduce risk
- keep track of progress to ensure providers are meeting their goals and reducing risks.
Why it is important
Aged care providers deliver a critical service to senior Australians.
Unplanned events can have a major impact on providers’ day-to-day operations or financial position. This can include natural events such as floods and bushfires, the COVID-19 pandemic and other external or internal factors that affect financial performance.
By helping providers stay financially viable, we can make sure their service remains of high quality and meets the needs of residents and care recipients.
Goals of the program
The Aged Care Financial Report provides insights into the financial performance and viability of aged care providers. We will contact providers who may experiencing financial stress and could benefit from participating in the program.
The support program aims to:
- work with expert partners to help providers identify and address financial issues early, so that they can continue to operate long term
- avoid a service having to close down, leaving residents or care recipients to find another place or service.
There is no cost to aged care providers to access or receive assistance. We work with providers to access recent financial and related information to understand the provider’s current risks and challenges.
The risk factors used in determining an aged care provider’s financial performance can include:
- audit report
- economies of scale and resident mix
- earnings before interest, tax, depreciation, and amortisation (EBITDA)
- wages to revenue ratio
- equity position
- balance sheet metrics, and
- profit and loss.
Learn about the risk factors considered in understanding an aged care provider’s financial performance.
Who we work with
In addition to our Financial Monitoring and Business Assistance Program’s accounting and financial management team, we partner with McGrathNicol and StewartBrown to draw on their financial assessment expertise and knowledge of the aged care sector.