Home care providers are significantly more profitable than residential aged care providers, according to the Quarterly Financial Snapshot.
More than three quarters – 78% – of home care providers reported a net profit before tax. Profitable home care providers services 77% of home care recipients, compared with only 26% in residential care.
In our SATURDAY magazine this week, Editor Lauren Broomham flags cash flow as the major concern for home care providers.
The QFR shows that the median liquidity ratio for the home care sector was $82 – in other words, for every $82 of cash and assets available, the provider has $100 of debt obligations.
The median capital adequacy ratio was only 0.46 – for every $100 of assets, $54 was debt funded.
Lauren argues that while the majority of home care providers are recording a profit, cash flows are tight and capital is in short supply.
Care minutes
The median staff time for RNs, cleaning, gardening, domestic assistance, allied health, care management and admin, was 53.65 minutes per care recipient per day. The majority of that care is delivered by personal care staff (cleaning, gardening, domestic assistance).
Wages
Like residential aged care, wages represent a high proportion of revenue for home care providers. The median wages to revenue for home care providers was 61% (74% residential).
The home care workers are paid more than staff in residential aged care. The median of the average hourly rate was $49 for registered nurses, $37 for enrolled nurses and $32 for personal care staff (compared with an average hourly rate in residential aged care of $45 for registered nurses, $33 for enrolled nurses and $27 for personal care workers.)
Unspent funds reached $1.6 billion as at 30 September 2022, but over time the balance is expected to diminish.
