Aged care & retirement living

Australian cost of residential aged care

In December 2010, Grant Thornton was commissioned by a consortium of industry peak bodies and providers to undertake a national study of the cost of delivering residential aged care services in modern and efficient facilities. This report is the culmination of this research which builds upon our review of New Zealand residential aged care and similar research undertaken by the Joseph Rowntree Foundation in the United Kingdom.

Implications for the residential aged care industry

Click here to read our response to the Productivity Commission's final report "Caring for Older Australians", released in August 2011. The Productivity Commission has addressed most of the issues raised by Grant Thornton Australia in our response submitted to the Inquiry which represents the most comprehensive review of the aged care industry since the Review of Pricing Arrangements in Residential Aged Care 2004 (The Hogan Review).

Retirement living:  Industry trends and prospects

This is the first report on our findings from the national Grant Thornton/RVA Retirement Living Survey. In light of our ageing population, demographic shifts and changing market drivers, this is a timely review of the evolution of seniors' housing in Australia. This research explores not only the current state of the market, but contrasts the changing expections of future generations of consumers.

Aged Care Survey 2008

January 2009

Grant Thornton Australia is the leading provider of accounting and business advisory services to the aged care industry in Australia.

Grant Thornton’s roster of aged care clients is extensive. We have many years experience working with aged care providers, both at organisation-wide and facility-specific levels. Our aged care team has been responsible for more financial assessments of aged care facilities than any other organisation in Australia and our experience includes the management of aged care facilities. We have relationships with all major industry associations, and are regularly called upon by Government and financial institutions to provide aged care industry advice.

We understand the issues at the heart of aged care business and operations - the delicate balance between service standards and financial return. The advice and solutions we offer are tried and tested: What funding and pricing models could work best for you? What should your staff ratios be? Is your cash flow adequate? We can help you identify risks, save costs and increase revenues.

Our understanding of  the issues facing the industry is supported by our 2008 national aged care survey and the 2010 Retirement Living survey, responding to the industry’s need for statistics and benchmarking data. The findings of these surveys have armed us with even greater knowledge to assist our clients.  You can download the summary overview report here, or download the full findings in depth here.

Click here to download our first report from the 2010 Retirement Living survey.

Grant Thornton Australia’s services to the aged care industry include but are not limited to:

• Financial analysis, operational performance reviews and benchmarking
• Viability assessments
• Feasibility Studies
• Restructuring, insolvency/recovery
• Risk management
• Valuations, mergers and acquisitions
• Property condition assessments
• Management training and education
• Audit and compliance
• Tax advice

Further reading from Grant Thornton Australia

Industry Intelligence Unit - Aged Care (March 2011):  Productivity Commission Report, Grant Thornton's retirement villages survey, summary of New Zealand's Aged Residential Care Service Review, issues for financiers 
Industry Intelligence Unit - Aged Care (March 2010):  Recent government initiatives and challenges from a lenders' and investors' perspective

Industry Intelligence Unit - Aged Care (February 2008):  Key aged care industry success factors and sector consolidation

Industry Intelligence Unit - Aged Care (November 2007):  Delves into the findings of the Aged CAre Providers Financial Performance Survey

Industry Intelligence Unit - Aged Care (July 2007):  Aged care loan and licence structures

Industry Intelligence Unit - Retirement villages and aged care (April 2007):  Overview of the aged care and retirement village sectors and their structures

For more information about Grant Thornton’s aged care services, please contact:

Cam Ansell
Industry Leader - Aged Care
T  08 9480 2000
E  cam.ansell@au.gt.com