Analysis of the Department of Health and Aged Care’s Aged Care Service list reveals the pace of new aged care beds being added to the system is declining, with the number of beds in NSW actually falling in the year to 30 June 2023.
Overall, there were 225,388 residential aged care places as of 30 June 2023 (including multipurpose, innovative, and places in Aboriginal and Torres-Straight Islander programs), an increase of 1,765 from the previous year.
Just over 1,200 of these beds were in metropolitan areas, while just 584 were built in inner regional areas. Outer regional Australia went backwards, losing 86 beds.
This increase is only about half the annual average of 2,915 places that have been added to the system each year over the last five years, according to an analysis of the figures from Not For Profit aged care provider Bolton Clarke.
As shown in the table above, all states experienced an increase in aged care places during the year except NSW, which had 444 fewer beds at the end of the financial year.
The SOURCE reported in March that, three RAC (Residential Aged Care) homes in Sydney had closed and the following month, Wesley Mission announced the closure of its three Sydney aged care homes.
The 10 largest aged care providers now account for more than 26% of total places – see below.
The Bolton Clarke analysis utilises the data to argue that despite increasing consolidation, there is still considerable competition in the residential care sector – and therefore room for Plan B or increased consumer contributions for accommodation and daily living expenses.
It identifies that about 75% of facilities have two or more competitors, although the degree of competition varies depending on location.
“These finding’s reinforce Bolton Clarke’s position that the best way to improve financial sustainability and provide an incentive to deliver better services is to remove restrictions on accommodation and hotel services fees,” the analysis states.
The SOURCE: With fewer aged care beds being built and ageing stock across the market, the residential care sector is facing a serious shortfall in new and refurbished beds in the next three to five years without intervention.
