The Department of Health, Disability and Ageing’s latest Quarterly Financial Snapshot has revealed that care management costs continue to outpace their actual delivery costs, with margins often used to offset losses in other services. Between 2020–21 and 2023–24, care management charges accounted for 16.5–18% of provider revenue, compared to just 10.5–11% in costs. With the Support at Home program introducing a 10% cap on care management and removing package management fees, analysts suggest providers will need to adjust pricing strategies and improve revenue utilisation to remain sustainable.
The report also shows that while 76.1% of home care providers recorded positive earnings in Q3 2024–25—down from the previous year—the sector overall saw improved profitability. Revenue per care recipient per day rose to $74.69, driven by higher claim days and package utilisation, though increased labour costs and reduced margins highlight the financial balancing act many providers face.
As these changes approach, providers will need to focus on operational efficiency and transparent reporting to remain viable. Platforms like CareVision can support this transition by enabling clearer financial management, improved utilisation tracking, and streamlined workflows, helping providers adapt to the new funding framework while keeping participant needs front and centre.You can view the Department’s full Quarterly Financial Snapshot at www.theweeklysource.com.au.