Bentleys National Aged Care Survey

Better numbers. Better decisions.

News & Resources

Do you know the true costs of care for your service?

In recent months, the Bentleys team have been travelling across several states working with providers and industry stakeholders to ignite discussion around the upcoming industry reforms.


While change is imminent, and the impacts of change for many are still unknown, one thing that we can be sure of is that thriving in the new aged care landscape will require providers and operators in the industry to think ahead and address the challenges head-on.


Changes to the Government’s funding approach will further drive “enforced efficiency” across the sector, and providers will need to have a strong grasp of the specifics of their operating expenses. 


For example, do you know how much of your operating budget is consumed in service delivery versus service support?


The 2013 Bentleys National Aged Care Survey identified that of the $203.42 in expenses that the “average” aged care provider spends per resident per day; over 30% is expended in service support costs such as administration and property costs. 


By drilling further into the data, an analysis of the Top 25% of survey participants (by EBITDA) shows that these providers spend almost 30% less in administration costs.  For an 80 bed facility, this represents more than $214, 000 per year in savings. 


With average income sitting at $207.57 per resident per day – just $4.14 above the average operating expenses - this saving makes a significant difference to the financial performance of aged care providers.


Understanding the true costs of care is also vital for mapping out future strategies and operational plans for aged care services – particularly with consumers now driving funding.


Think about the breakdown of your costs in the key streams of care, accommodation and services.


What percentage of your service support costs are attributable to the cost of your accommodation?


Consider the overheads in your business such as administration costs (including any marketing costs for attracting new residents), head office costs and finance costs.  All of these areas contribute to the overall cost of accommodation provision, and need to be factored into your pricing strategies.