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Financial Sustainability: Why just be viable when you can be sustainable?

A recent Australian Financial Review article; Earnings Surge Amongst Aged Care Providers (4th Nov, 2014) revealed that…

The country’s top aged care providers are almost 4 TIMES more profitable than the average…

That’s great, and probably not overly surprising news to most of us.

But what can we possibly learn from these top providers? What are they doing right? What can the rest of the aged care provider sector focus on to improve the sustainability of their businesses?

The Financial Review found that the single most significant contributing factor towards profitability in this group was Investment in Technology and Efficient Administrative Systems. The Australian Aging Agenda also made this assertion in an investigation into the economic sustainability of aged care providers. In this case sustainability was defined as enough funding to spend on significant refurbishments, a state where a company moves beyond viability, only really covering running costs and repairs, and moves towards a more profitable model of operation.