A new survey by the advisory group suggests that aged care providers are looking to overhaul their business models as the funding gap continues to widen.

The survey – which gathered 276 responses from 207 aged care providers – found that 85% of respondents thought that more funding was needed to provide aged care services.

Half (49%) believed that an increase of more than 15% was required to bridge the gap regardless of the new Australian National Aged Care Classification (AN-ACC) funding model.

However, 50% said that care funding would be considered adequate if there was more opportunity for higher consumer contributions to the cost of accommodation and services.

Critically, 89% said their organisation was ready to undergo significant transformation to increase financial sustainability.

“These findings are in line with the conversations we have with providers every day. The industry is frighteningly busy and dealing with overwhelming change but there is a strong level of commitment to a better future for older Australians in care,” Mirus Australia Partner, Andrew Farmer, said.

The SOURCE: while there is pressure on the Government to increase funding, aged care providers are looking at how they can bridge the funding gap themselves by diversifying their revenue streams and developing alternative models.