Health & Aged Care
Australia’s growing and ageing population, combined with expanding private health insurance coverage, has generated strong demand for health services (4.5% sector growth). While rising private health coverage has provided significant benefits to allied health services over the past five years, the ageing population has strengthened demand across the board.
Not-for-profit organisations form the backbone of the health and aged care sector – in fact the not-for-profit sector maintain 58% of residential aged care homes, and 81% of home and community care package providers.
The Health and Aged Care sector includes:
Aged care facilities
Private practices (e.g. dental, GP’s, physiotherapy, optometry etc.)
Allied and alternative health services
Medical services (e.g. specialists, pathology & diagnostics)
What we do for this industry
The Health and Aged care industry is highly regulated which impacts on business operations. We understand the unique situation health businesses are in and provide the following services to assist them:
Expertise on current issues affecting the health and aged care sector
Financial report audit and assistance with the preparation of financial reports
Assistance with completion of regulatory and compliance reporting obligations
Corporate governance advice
Business growth strategies
Annual tax planning, tax returns and BAS reporting
Business succession planning
Challenges & Opportunities
Rapid growth in some areas of this sector is placing pressure on staffing and this is compounded by budget stress.
Health based not-for-profit organisations are seeing a changing funding landscape from both Federal and State Government, which has caused some pressure on cash flows. There has also been a push for increased demand for transparency and organisational accountability.
Case study 1: Solving growth problems
A large aged care provider was experiencing growth and did not have the correct management structure or financial systems in place to deal with this situation effectively. This created an issue where the Board of Directors did not correctly understand their financial position and left the door ajar for possible employee misappropriation.
Discussions with the Board of Directors helped to clarify their situation and guide their decision making. We then worked closely together to reconfigure their organisational structure while also developing in depth internal control and financial systems.
The provider was able to restructure their organisation to better meet its current and future requirements. Strategic targets and goals have been set and monitored and there is now a formalised, efficient financial and reporting system in place. The Board of Directors are now in a position to strategically aid and monitor growth, while also minimising risks for the organisation.
Case Study 2: Setting up a business
A newly graduated Chiropractor was about to commence his own business and needed assistance to get set-up and operational.
We established a company for his business and set-up regular wage and superannuation contributions for the owner. We organised his bookkeeping system (MYOB Essentials – an online accounting package) which meant he didn’t need to manually enter business financial data, saving over 10 hours per month. We were able to regularly access his financial records in real time which not only allowed us to manage his tax obligations but also provide advice on cash flow requirements and the general ‘health’ of his business in that crucial first year.
The client was able to receive a regular weekly payment from his company, giving him certainty around his personal cash flow. He was able to make regular superannuation contributions which is assisting his long term wealth creation goals. He is now focusing on running his Chiropractic business knowing not only that his BAS and tax lodgement obligations are professionally managed, but that a skilled set of eyes is regularly reviewing his business helping him to grow.