Listed residential aged care provider Estia Health, which will release its FY22 financial results on 23 August, has informed the ASX that $22.9 million of COVID-19 payments lodged with the Federal Government remain outstanding.
Estia Health, which operates 6,163 resident places in 68 homes in NSW, QLD, SA and VIC, made just $1 million profit before the top-up of Federal Government ‘temporary funding and grants’ of $21 million in FY21.
It revealed an $8.1 million net loss after tax in its HY22 financial report, with staff costs (excluding COVID) increasing 2.9% due to more overtime and agency costs, and regulatory and compliance-related costs growing by 5.3%.
Providers are able to apply for Federal Government grants to recover some of the costs incurred with COVID outbreaks in aged care homes. Six Estia Health homes are experiencing COVID outbreaks as of 5 August.
“The delay in processing of claims by Government continues and the Company is unable to predict the timing of the outcome or recovery in relation to its claims submissions,” Estia Health told the ASX.
“The Company has determined that under Australian Accounting Standards, grant claims that it has lodged but that have not been confirmed as approved by the Government at 30 June 2022 will not be recognised as income in the FY22 Financial Statements but will be recognised in a subsequent accounting period, when approved by the Government.
“As at 30 June 2022 the Company had submitted claims totalling $30 million in relation to grants for COVID-19 costs incurred in FY22, of which $7.1m had been confirmed and will be recognised as income for the FY22 period. Further grant claims relating to additional COVID-19 costs incurred in FY22 continue to be prepared for lodgement.”
Estia Health said detailed information relating to COVID-related costs and associated grant recovery will be provided in the audited financial results for FY22 on 23 August.
Estia Health shares have fallen 12.1% in the year-to-date. At the time of writing, the shares were priced at $2.
