Aged Care Minister Anika Wells promoted the new star rating system for residential care with a visit to operator Sundale’s Bowder home in Nambour, Queensland. Bowder was one of only 20 homes to achieve a five-star rating in the country.
However, Sundale reported a loss of $18.3 million for the 2022 financial year, of which $15.9 million relates to its Care Centres.
If our best aged care homes are losing $48,000 per bed, does this mean our aged care system is financially unsustainable?
Helen Sharpley, CEO of Sundale, told The SOURCE that closing the group’s McGowan Care Centre contributed to the loss, as did delays in recruiting key executive and senior manager roles, writing off bed licenses, and refurbishments. Sundale has also invested in 24/7 RNs and achieving care minute targets before funding for that came in. Sundale also has smaller aged care homes – Bowder only has 32 beds, which makes it difficult to spread overheads.
There is “enormous pressure” on the sector, their annual report states. “In the past five years Government subsidies have increased 5.5%, however, wage awards have increased 14.8%, nearly three times as much over the same period.”
The Not For Profit’s mission to care and support the local community is “unachievable if Sundale continues to operate at a financial loss,” the annual report states.
To be sustainable Sundale must expand, Helen said. “You have to get all the levers right. We know we need to grow,” she said.
Though Sundale has not yet set growth targets, it’s something they’re working on. With 1,500 often quoted as a sustainable size, Sundale currently only has around 400 beds.
Sundale’s strategy is to co-locate aged care homes within retirement village assets – however, expansion may mean they move away from that – although that structure still currently remains “who we are”, Helen said.
The last 12 months have been about laying down strong foundations – hiring key staff, including an executive manager clinical governance, establishing systems and processes, and focusing on occupancy.
Sundale’s aged care homes offer “fairly basic” accommodation, but their focus has been on delivering high standards of care – and the team is very proud of the five-star rating. It’s been wonderful validation for staff, Helen said. COVID has been “tough”, and staff have worked extremely hard.
“To have this recognition that you went through all of that and we still provided great care, I was really happy for the staff,” she said.
