Bidgee Hostel Expansion Public Meeting
• Background to Residential Aged Care
• LGA providers in context
• About Balranald Shire
• About the Facility
• Expansion Option
• Other solutions
• Key findings
Overview of the Aged Care Sector
1. Increased focus towards home care
2. Deregulation of accommodation
3. A re calibration of the means test provisions
4. More User pays
5. Focus on rural & Remote
Balranald Shire Resident Profile
2011 2016 2021 2026 2031
Balranald (A) 2.350 2,200 2,100 2,050 1,900
LGA 2011 2016 2021 2026 2031
Balranald (A) 249 277 323 394 394
Govt. target 20 22 26 32 32
Population forecast over 70 & Target supply
Long term demand for residential places exists
Data source:
- Department of Planning & Environment 2014, 2014 NSW projection data by LGA, Department of Planning & Environment, NSW Government;
- Australian Bureau of Statistics 2011 & 2014, Population Estimates by Age and Sex, Local Government Areas, ASGS 2011 & ASGS 2014, ABS,
Canberra
About Bidgee Hostel
• The facility was built in 1994
• Minor refurbishment in 2012
• Persistent vacancies
• Opportunity to increase revenue by
refurbishing
• Approval - 15 places & capital grant
$1,999,000
• Staff recruitment challenges
Operational review of Bidgee Hostel
2013 2014 2015 2016b
Revenue $880,465 $1,124,790 $1,160,837 $1,113,400
EBITDA* -$37,116 $131,307 $85,987 -$17,800
Net Surplus -$105,494 $72,676 $29,967 -$72,800
EBITDA vs Revenue -4% 12% 7% -2%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
-$200,000
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
Operating Outcomes
Financial Summary
• No charge in 2014 & 15 for council costs
• Not all costs borne by council reflected in
result
• Indicative 2016 outcome - loss $150,000 -
$250,000
• Capital support to maintain the facility
Review of expansion proposal
1. Cost $3,200,000 - $1,200,000 to be found
2. Losses will exceed $5k per place
3. Limited or no lump sums
4. Operating surplus of $13K to repay over 10yr
5. Human resources
6. Capabilities and Competencies
7. Governance
• Is aged care core business to Council?
• Is it within the competency of Council?
• Does it require council involvement?
• When is the right time to expand?
• How to solve the human capital issues?
• How to maintain skills & competency?
Issues to consider
Facility Owner Action taken
Teloca House Hostel Narrandera Shire Council Sold to RSL Lifecare
Broken Hill Closed
Bert England Lodge City of Rockingham Management passed to
Southern Cross care
Kalkarni Residency Shire of Brookton
Carramar Hostel City of Bayswater Transferred to Churches of
Christ
Corben House City of Kingston Transferred to Southern Cross
Care
Jindera, Holbrook & Howlong Greater Hume Sold to United Protestant
Association
Lara Aged Care Dungog and District Retirement
Living Ltd (NFP Community)
Merged with RSL Lifecare
Balranald is not alone - Rural and remote single
facility operators challenged
Alternative Solutions