Home care operator margins declined in Q1 2024-25 to 7.1%, down from 7.7% the previous quarter and 7.8% in Q1 2023-24, according to the Department of Health and Aged Care's Quarterly Financial Snapshot released on Tuesday.
However, 32 operators entered the home care market in the 12 months to 30 September 2024, while 20 left.
Fewer home care providers were profitable in Q1 2023-24: 73.7% of providers, down from 76.7% the previous quarter and 76.2% in Q1 2023-24.
Revenue for existing operators was up 10% to $80.57 per care recipient per day compared with the previous corresponding quarter, largely due to a 6.2% increase in claim days and an increase in package utilisation from 79.6% in Q1 2023-24 to 85.7% in Q1 2024-25.
Expenses rose 11%, largely due to the increased labour costs associated with the increase in claim days and package utilisation.
Earnings before interest, tax, depreciation and amortisation (EBITDA) were $6.11 per care recipient per day in Q1 2024-25, up from $6.04 the previous quarter, but a decline from the $6.14 in Q1 2023-24.
