Not For Profit aged care provider HammondCare has posted a net deficit of more than $10 million despite 8.5% growth in revenue, chalked up in part to the impact of COVID-19.
HammondCare saw 15.9% revenue growth in its home care services and 9.7% growth in residential care, with total revenue increasing to $437 million compared to $402 million last year; however, its $7 million surplus in FY21 turned into a $10.7 million net deficit in FY22.
The provider ascribed the deficit to the impact of the COVID-19 Omicron wave, workers’ compensation costs, lower reserve income, and lower Foundation income.
CEO Mike Baird (above) said that despite a “brutal” year for the aged care sector, HammondCare is doing better than the deficit would suggest.
“The pandemic has created costs that are unlikely to be repeated and if we exclude these and the unexpected rise in workers’ compensation costs, we are close to break-even while we continue to invest in scale.
“There is a plan to return our residential business to break-even (a challenge for the entire sector), and overall our cash position remains very strong. The balance sheet also gives great comfort. Having worked in the financial sector, I can confirm we are actually in an enviable financial position,” he said.
HammondCare’s 2022 annual report marks 90 years in the sector.
