Aged care providers are announcing strong results – with increased profits both provider leadership and advocates should look to accountability

From Rockpool’s head, Mellisa Argent, to Juniper’s Bricknell and RFBI’s Frank Price, industry leading aged care leaders have articulated that aged care providers should and must maneuver into profitability so as to be in the best place to not only run smooth operations but provide the utmost in quality, and be prepared for strategic growth the sector needs; The building of beds requires significant capital to break ground. Yet consumer and advocate sentiment is overt in its desire for transparency and accountability with where and how the millions of profit are handled and spent. As a sector that deals in the care of the vulnerable, high-performing providers are seeking to meet the appetite of transparency when it comes to the surplus of millions. BaptistCare’s recent performance points not only to a possible direction in the move to accountability with financial strategy but also importantly an openness of leadership to convey the intentionality behind the future spending of the millions.

Profitability and accountability

Where government figures had placed the sector’s profitability at only 68% of providers, a recent slew of big actors in the sector have highlighted that profitability is not only possible in the sector, it looks to be enticing further investment. At the intersection of caring for some of Australia’s most vulnerable, and rising costs, provider leadership have been vocal in the difficulty of staying ahead of the red. Likewise advocates have called for greater transparency of profits, particularly for the big players. It has not been lost on aged care leadership that the line of engaging in public sentiment is a fine one.

Aged Care Justice is a community legal centre supporting seniors receiving aged care services, within RAC and in-home care. In their recent report released after two years of resource creation, campaigns and community engagement, a wide range of experiences emerged for those having been involved in the aged care system.

At an overall level, one of the core sentiments was that there is substantial disillusionment with the system, ACJ notes in their report that many Australians felt care had “gone downhill since privatisation”, pointing to reduced staff and profit-driven models.

Strategic honesty builds reputational currency

There has been a shift among many aged care leaders from varying modes of organisation from profit, to non-profit, to faith based and all in-between. The opportunity to step into accountable transparency, over and above any compliance stipulations is growing in worthiness. Where the clear explanation of profits and communication with the concerned cohort of seniors and loved ones can be engaged with, some providers are stepping into this. BaptistCare is the latest to seek to publicly highlight its profitability as well as its intentions for the years ahead, inviting partnership with not only those in its care but potential residents and loved ones of the future. A collaborative move, both honest and strategic in decision, as it looks to maintain its market growth.

BaptistCare’s strong financial results

BapstiCare has reported a “strong financial position for the 2024-2025 financial year”. They articulate that their current positioning reflects, “the stability and resilience of its core operations following the national merger earlier this year.”

The organisation noted the, “underlying earnings before interest, tax, depreciation and amortisation (EBITDA) remained solid, demonstrating the continued strength of BaptistCare’s services and operations across Australia.”

Directly highlighting their recent move to position themselves in a period of rapid growth through the strategic route of mergers and acquisitions, the organisation confirms the pay-off from their gamble, “the positive impact of recent mergers and acquisitions, which took effect across the full financial year, has further strengthened BaptistCare’s balance sheet and diversified its revenue base.”

A robust finish after spending big

After their sizable acquisitions, most notably buying all of WA Keyton’s retirement living portfolio likely to the tune of $130 million, and firmly establishing BaptistCare’s footprint out west, BaptistCare has publicly shared a healthy surplus.

“BaptistCare recorded a total comprehensive income of $530 million, which includes $496 million attributed to ‘gain on bargain purchase’ accounting adjustments that recognise the value of the merger and acquisitions”, the company notes.

“After accounting for other one-off items, the organisation achieved an underlying surplus of $15 million.”

Important language

In the temperature of a bewildered senior cohort, as well as loved ones, advocates and even some providers, the change of act, rules, pricing models and confusion over rules has caused significant distress.

It is likely that BaptistCare leadership has made a note of the sentiment in Australia, and those currently in their care. To speak of significant profits/surplus, while shaping them to be of service to current seniors in care, and those looking at potential care, is arguably a humane and strategic decision that balances the moral and excellent that Australians are seeking.

Moore caps of the company’s financial announcement by placing future plans squarely in investing in the improvement and function of facilities and front-line staff, “these results show that BaptistCare is in a strong and stable position, with the scale and foundation to invest in innovation, quality services, and the people who deliver them.”

“Our focus remains on strengthening communities and supporting those who need us most, while ensuring we are sustainable for the long term.”

It will remain to be seen what other providers seek to couple announcements of large profits with language that centers them in the service of those at the heart of care, the seniors at its centre, and the front-line staff that are the crux of operational day-to-day care excellence.