Chair's and Treasurer's Report

CHAIR’S AND TREASURE’S REPORT

to the

BUSHLAND HEALTH GROUP LIMITED

ANNUAL GENERAL MEETING

CHAIR’S REPORT

Despite all the uncertainty in the Aged Care Industry, it is particularly pleasing that all our staff have contributed to show that the Company recorded (after providing for income tax) a profit of $1,836,223. This result represents an increase of $1,117,551 when compared to the profit of $658,672 for the previous year.

Future profits in the years to come cannot be assured. Last year 60% of Aged Care providers Nationwide have reported running at a loss. Last year's profit was due to good management and the increased interest rates paid on the company's cash investments. While nationally interest rates are a problem to homeowners, it is frankly a life saver to our company.

This profit is outstanding when you consider the issues raised last year in relation to obtaining and keeping registered nurses and other care staff. Our Company along with many other providers, must rely on “agency nurses” on short term contracts, to fill our rosters. In our case we employ 31. The costs for this are very high. The glimmer of hope is the success of the Federal Governments PALM scheme (Pacific Australia Labour Mobility Scheme). From total staff numbers (including agency nurses) of 313, 26 are employed on this scheme within our facilities.

As a Board we are acutely aware that we have received an “unqualified” Audit report, and I would like to thank Alaine and her team for the work they do and her signing off on the report.

To the staff led by the Chief Executive Officer, Errol Curran, a fantastic result considering the ongoing profitability issues (or lack of it) in the industry. Sincere thanks to all the staff.

Next year will be an additional challenge as our Federal Government seeks to bring into operation the “Aged Care Bill 2024”. This bill is the Government’s response to the Royal Commission into Aged Care. We expect that if the proposed bill is promulgated, the starting date is likely to be the 1st of July 2025. There is likely to be some comprehensive changes into how we operate as a business. There will also be some upskilling required from our Staff and Directors as we respond to the additional challenges. One thing is for certain, there is no additional federal government funding to implement these changes, which for our organization is likely to be in the region of up to $200,000. That amount will come directly off our “bottom line”

In addition to the ongoing care staffing issues, we also have an issue with having members of the community nominating for Board members. My fellow board members are volunteers and in the main ageing. We require younger professional members of the public to come forward and consider some time for their community. 

I would like to thank, along with the rest of the Board, Mr. John Saad who will retire at the culmination of this meeting. John has contributed 26 years.

The company has submitted plans to the Mid Coast Council for the development of the Marie Avenue land to be known as “MANNING RISE” for independent self-care units. It is proposed that eventually there will be 210 units and there are already a few people who have indicated that they wish to reside there, it is initially proposed that 19 units be in the first stage. The total development could take 40 years to complete.  With final approvals and initial sitework the commencement of stage one could be two and half years away.

The ”Fig Trees” development on the Manning Riverbank is proceeding slowly with final proposals yet to be received.

As a company focusing our operations in the Manning Valley Area with most of the staff residing amongst us all, it is pleasing to note that a substantial number of staff have been with us for many years. As a company we place a great focus on staff training and loyalty. In turn that brings a developing culture of care. Culture is something you do when no one is watching. Bushland Health Care will continue to build that culture.

George Wilson

Chair

TREASURER’S REPORT

I am pleased to present my report for the year ended 30 June 2024.

The year on year turn around in profitability is very pleasing.

While this is very good, sadly it is not a reflection of the future situation. During 2024 we were still funded for the required new staffing requirements under the changes brought about by the royal commission into aged care. This meant our funding receipts increased markedly in 2024 but unfortunately, we are still unable to find sufficient staff to meet those requirements so are not spending the funding as expected. This has the flow on affect that we are not able to run our facilities at capacity so there are vacancies in each home at a time when there is increased demand and many prospective residents are being cared for in our local hospital.

Thankfully though, interest has remained at higher rates and has provided $2.34 million during 2024. As you can see without this revenue, we would be trading in a loss position so the government still has not realised the long term affect of its funding model. Pity help those organisations that don’t have the cash reserves that Bushland has let alone those operating with interest bearing debt.

Of course, all facilities in the industry have debt as our funds are effectively provided as loans from residents in the form of licence agreement loans for the villa units or refundable accommodation deposits from the aged care facilities residents. For Bushland these amount to $71.5 million. Against this we have cash invested of $40.7 million. Thus our balance sheet remains quite strong.

Other figures of interest in the statements include total expenditure of $31.5 million for the year including $23.5 million in employee wages and other benefits, a considerable injection into the local economy. Insurance costs also continue to increase and this year did so by 17% from the previous year to a total of $654,000 for the year.

In recommending this report for adoption I would like to thank my fellow board members and also the staff of this organisation for continually working above and beyond to deliver the level of care in difficult financial circumstances.

Graham Brown OAM

Treasurer

Bushland Admin