As part of our monthly webinar series, we recently surveyed 207 aged care providers on their perspectives on the funding landscape and financial sustainability within the industry. The results reveal a strong consensus among providers regarding the need for additional funding to meet the growing demands of Australia’s ageing population. Moreover, they emphasise the importance of exploring innovative approaches to revenue generation. This blog discusses the key findings of the survey and highlights the commitment of aged care providers to transforming their organisations for a better future.
The need for additional funding
A staggering 95% of respondents believe that more funding is necessary to adequately meet the demands of aged care services. The challenges posed by an aging population and increasing complexities in care requirements are among the pressing concerns. However, there is also uncertainty surrounding significant costs such as recent approved wage increases, which further highlight the need for increased financial support.
Bridging the gap: A call for funding boost
The survey reveals that 49% of aged care providers believe a funding boost of more than 15% is required to bridge the gap and ensure the delivery of quality care. This statistic underscores the financial strain experienced by providers and the urgency for increased investment in the sector. It’s important to note that this response does not fully consider whether the organisations have reached an optimal level of funding and care minute compliance under the new AN-ACC model. History shows us that the industry takes years to fully adjust to a new funding mechanism.
Exploring alternative funding models
Interestingly, 50% of surveyed providers expressed the belief that care funding would be considered adequate if there were more opportunities to include greater user pays revenue in accommodation and services. This viewpoint highlights the importance of exploring alternative funding models and diversifying revenue streams within the aged care sector. Finding new avenues for funding can help alleviate the financial burden on providers and contribute to long-term financial sustainability.
It’s also interesting to note that 29% disagree.
Commitment to financial sustainability
A significant majority of respondents (89%) indicated that their organisations are poised to undergo significant transformation to increase financial sustainability. This finding showcases the industry’s recognition of the need for proactive measures to adapt to changing circumstances and ensure long-term viability. Providers are committed to enhancing their organisations’ financial sustainability to guarantee the provision of high-quality care for residents.
Looking towards the future
The survey results provide a snapshot of the sentiments shared by aged care providers regarding funding and financial sustainability. They reinforce the continued need for focus on funding to meet the demands of an ageing population and the desire for innovative approaches to revenue generation. Aged care providers are dedicated to transforming their organisations and working towards a better future for older Australians in care. To discuss strategies to improve operational efficiency and financial sustainability, get in touch.