The Aged Care Act brought in by the Albanese Government includes the new Support at Home program, which will set a 10% cap for care management fees from 1 July 2025.
The Department of Health and Aged Care's own Quarterly Financial Snapshot – Quarter 4 2023-24 showed operator's care management fees for all Home Care Packages are 17% per Package, less than the current cap of 20%, which repeats the Quarter 3 2023-24 figures.
The Weekly SOURCE has reported that a number of large home care providers including Australian Unity, BaptistCare At Home, Silverchain and Bolton Clarke have all expressed grave concern with the 10% cap.
Package management fees across all Home Care Package levels were 12%, less that the current 15% cap.
The Opposition, led by Shadow Minister for Aged Care Anne Ruston, have proposed further consultation on the proposed 10% care management cap under the reforms.
The same report also revealed that home care providers' profitability did improve in the year to 30 June 2024.
Earnings before interest tax, depreciation and amortisation (EBITDA) increased 32% to $6.04 per care recipient per day (pcrpd).
Revenue grew 5.8% to $74.03 pcrpc, driven by an 11.9% increase in the Home Care Subsidy and Supplements due to the Fair Work Commission pay rises, and an 18.1% increase in claim days.
As of 30 June 2024 year to date (YTD), the median EBITDA margin for the sector was 7.5%, a 0.7 percentage point increase on the 30 June 2023 YTD result.
