For many aged care homes across Australia, remaining profitable or even managing to break even on operating costs has been an uphill battle since the start of the COVID-19 pandemic.
The Stewart-Brown aged-care financial performance survey is one of the largest sector surveys of its kind, conducted quarterly. It analyses financial results from nearly half of Australia’s currently active nursing homes and accounts for just shy of 100,000 beds across the nation.
The latest quarter’s results have painted an especially bleak picture for many facility administrators throughout the country. A total of 70% of aged care facilities surveyed by Stewart-Brown were found to be running at a significant financial loss – a 56% increase from the same period last year. The financial situation is projected to only worsen in the foreseeable future; as the aged care sector has suffered an aggregate operating loss to the tune of approximately 3.5 billion dollars over the past five years, Stewart-Brown believes the industry is now on the precipice of a “fiscal cliff”, and industry-wide change is needed to make continued operation sustainable.
While there are multiple factors contributing to the loss of profitability for aged care facilities, one of the more concerning aspects is the increased cost of wholesale goods and sundries – meaning operating costs for catering have skyrocketed. Even with the additional ten dollar a day supplement, many homes are stretched to their limits trying to feed residents. This is most acute for aged care facilities who provide their own in-house catering, as they lack the wholesale buying power available to large confederations of facilities and professional aged care catering companies.
Outsourcing the catering of your facility could be an ideal way of reducing the long-term operating costs that you and your staff face. When operating your catering through an experienced nursing home catering contract provider and aged care catering provider, your facility leverages a series of advantages unavailable to in-house providers:
Staffing
Aged care facilities partnered with an outsourced catering provider are insulated from the risks of staff turnover, with a guaranteed supply of ready and relief staff ensuring your residents are always well taken care of. This also ensures your facility does need to bear either the expense or the difficulties of the recruitment process for catering staff.
Procurement
When partnering with a nursing home catering provider, you can leverage the wholesale buying power of that provider to drive down total costs. Wholesale suppliers remain profitable through sales conducted at great scale, and when dealing with smaller outfits such as an individual aged care provider they may charge a substantial levy to make it a sensible business decision or decline to deal with your facility altogether.
Cater Care partners with more than a hundred suppliers across a diverse and flexible supply chain, a few of which include:
Quality
The Royal Commission into Aged Care Quality & Safety demonstrated in great detail some of the pitfalls of inexperienced facilities attempting to provide in-house catering solutions, and in a post-Commission world many facilities are eager to escape that reputation. Not only does working with an outside provider offer the chance to potentially lower your operating costs, but your facility may do so while producing a superior service that ensures your resident’s mealtimes are always a positive experience.
Here’s what some of Cater Care’s aged care clients had to say…
“Providers such as Cater Care alleviate the pressure on aged care organisations from having to be the catering experts, allowing them to focus on delivering exceptional care. Partnering with Cater Care ensures we deliver well managed catering that meets compliance outcomes.” – Merinda March, Coolibah Care, former CEO
“We’ve done a lot of outsourced and in-house catering before, and with Cater Care we’ve finally found a company that’s synonymous with us.” – Be Valenzuela, Greenhill Estate, General Manager
“The process was much smoother than I was expecting. The short interval helped alleviate any stress or anxiety the staff may have been feeling regarding the transition from in-house to outsourced catering.” – Colin Baker, Warrigal Care, Hospitality Services Manager
As the aged care industry works to adapt to a changing world, it’s become apparent that aged care providers must change with it or risk being left behind. If you’re considering how to alleviate some of the strain your facility is currently experiencing, consider getting in touch with the Cater Care team to discuss your options.
Download the eBook below to learn more about how Cater Care demonstrates best practices in flexibility, leadership and professionalism in the aged care industry.
You can also speak to our National Sales Manager for Aged Care, Jonathan Storer to find out what we can do for your aged care site.
jonathan.storer@catercare.com.
