ACFA 7th annual report

On July 4 the Aged Care Financing Authority (ACFA) released it’s seventh Report on Funding and Financing in the Aged Care Sector[1].

If you don’t have time to read the full report, The Ideal Consultancy provides a snapshot of some of the information within the report. The information presented relates to FY 2017-18 and generally compares with the previous financial year unless otherwise stated.

Residential Aged Care

There were 886 Approved Providers, down from 902 Approved Providers in 2016-17, running 207,142 operational places compared to 200,689 the previous year.

There are 31.603 provisional places yet to be made operational and 7,802 places offline. 1,371 places had been surrendered or lapsed.

Of all places 80% are single rooms with an ensuite, up from 77% in the previous year.


Size of Provider % of Providers % of all PLaces
1 Facility 63% 21%
2-6 Facilities 28% 23%
7-19 Facilities 7% 25%
20+ Facilities 2% 31%


occupancy and Access

Occupancy continues to decline with a national average of 90.3% against 91.8% in 2016-17 and 92.4% in 2015-16.

In relation to urgency for care 7% of consumers enter residential aged care within one week of an ACAT assessment, 23% within a month and 64% within nine months.

Compared to the previous financial year more consumers are choosing a DAP (40%) over a RAD (37%).


56% of Approved Providers achieved a net profit. This figure was 68% in the prior financial year.

Average EBITDA per resident per year is down 24%. This average was $8,716 in 2017-18 compared to $11,481 previously. Of this the for profit providers achieved an average of $11,634, not-for-profits an average of $7,916 and government providers an average -$6,411.

Total expenditure increased 5.3% in 2017-18 compared to 2016-17 while revenue only increased 1.7%. There are no surprises that employee costs comprise the largest expense, increasing 5.4% on the previous year, and being 70% of total expenses.

Top Performers

By size of provider big does not always mean better as some of the highest performing providers were single site organisations however this group was also heavily represented in the bottom quartile.

Size of Provider Average EBITDA Top Quartile

(all providers)

Bottom Quartile (All Providers)
1 Facility $7,110 $25,582 -$16,007
2-6 Facilities $6,340 $22,567 -$7,977
7-19 Facilities $9,914 $23,880 -$7,376
20+ Facilities $10,622 $16,358 -$2,609


By industry sector the top performing homes were in the for-profit sectors with an average of $38,720 in the top for profit quartile versus the worst performing homes across government homes at -$21,028.

Home Care Packages

There has been continued interest in the Home Care market with 873 Home Care Approved Providers in 2017-18, up from 702 Approved Providers in 2016-17. This represents a 24% in the number of Approved Providers of Home Care.

There was 20% more consumers of Home Care Packages; this figure has nearly doubled over the past five years.

Market Share

For profit organisations account for 17% of all Home Care Packages, up from 11% in the previous financial year. Not for profit providers comprise 76% of the market, down from 82%. Seven per cent of packages are run by Government.

Financial Performance

2017-18 saw a significant decline in the overall financial performance within the Home Care sector. 70% of Providers made a profit, down from 75% in 2016-17.

Expenses per consumer rose 7% while income decreased by one per cent.

Average EBITDA per consumer per year was $1,217 compared to ~$3,000 for the past three years. When split by type of organisation the for profit providers demonstrated the lowest average EBITDA.

Organisation Type EBITDA per consumer per year EBITDA Margin
For Profit $169 0.5%
Not for Profit $1,358 5.4%
Government $1,791 8.2%


The size of provider resulted in a wide variation in EBITDA per consumer per year with smaller organisations achieving higher margins.

Organisation Type EBITDA per consumer per year EBITDA Margin
Single Service $1,758 5.0%
2 to 6 Services $1,680 6.7%
7+ Services $999 3.9%

Unspent Funds

At June 30 2018 Home Care Providers held $539m in unspent funds, an increase of 64% on the previous financial year.