Chairman's and Treasurer's Report
CHAIRMAN’S AND TREASURE’S REPORT
to the
BUSHLAND HEALTH GROUP LIMITED
ANNUAL GENERAL MEETING
CHAIRMAN’S REPORT
Regrettably, as previously expressed last year in Graham Brown’s report, it is still very difficult times in the aged care industry this year. We were able to turn around a loss last year to a profit of $658,672 this year. This profit can be attributed to two main factors, the fact that the Federal Government did increase its financial subsidies last year and secondly the increased interest rates paid on our cash investments.
The ”Acute Care” requirements of senior Australians continues to be very painful in our industry with chronic underfunding from the Federal Government. In particular, funding to attract staff by payment of salaries that would lead to staff continuing to work in our industry. As a society you cannot pay higher rates of pay to Registered Nurses in Acute Care (Hospitals) and the NDIS and yet attract staff (and indeed keep staff) in the Aged Care Acute Care Sector. It just does not work! This is the spotlight issue.
It also seems to be an issue that young people are reluctant to see nursing as a desirable career path.
As a Board we have been proactive in that we participate as a provider in the Australian Government’s PALM scheme (Pacific Australia Labour Mobility) Scheme. This scheme has frankly been a godsend to our company and has enabled us to recruit 23 Assistants in Nursing, with 15 from Kiribati, 8 from Fiji, with another 5 more in the pipeline, so to speak. Frankly if we were not able to recruit these individuals post COVID, we would have been in dire circumstances which would have without a doubt affected our occupancy rates.
We still, in Old Bar, have a complete Banyula Lodge wing that we have never opened due solely to difficulties in obtaining and retaining staff.
To the staff that remain in our Company there is, and rightly so, unlimited praise, as their dedication to the residents and our industry shows no bounds. Short notice and even double shifts seem to be regrettably the norm.
With the immediate urgency of COVID-19 now receding somewhat, it is recalled the efforts of our nursing staff in having to don and then regularly change their personal protection equipment (PPE) sometimes many times in their shift, and all that in addition to other infection control measures. Their extraordinary efforts during these times are acknowledged and appreciated.
All Board Directors are acutely aware that we have received an unqualified Audit report. Thanks, must be to Errol and his staff for their efforts and indeed assistance to our auditors.
As a company we are progressing, in that very shortly we will be submitting to Mid Coast Council plans for “Independent Living” multi story apartments along the scenic Manning Riverbank which residents will be able to ultimately occupy on a “Loan/License” arrangement. We have already received many expressions of interest from the public in this development, which is very encouraging.
We are also progressing in planning a development, adjacent to Marie Ave Taree and directly opposite our Warrana Village, a precinct to be known as “Manning Rise”. This is a large development that will take many years to fully complete.
As a board we will continue to develop Independent Self Care precincts to reflect the demand form people in their senior years.
We now can deliver our future plans which are ambitious in scope and range.
George Wilson
Chairman
TREASURER’S REPORT
Although I have been on a leave of absence from the Board since July 2023, for which I am grateful to my fellow Board members, I am presenting this report for the year ended 30 June 2023.
As can be seen from the financial statements we have returned to profitability for this year. I must point out however that this has been mainly due to the additional funding received from the government to meet the care minute requirements following the Royal Commission recommendations. The actual requirements for care and nurse minutes per day per resident only became mandatory on 1 October 2023. The funding however was increased in October 2022 to allow operators time to attract the additional staff required.
Like most operators we are finding it difficult to meet the required minute targets due to ongoing staffing issues.
In addition to the additional funding, we have of course returned to receiving interest income on our cash reserves. This has resulted in $1.35 million in interest revenue, without which we would have incurred another significant loss. We are indeed lucky to have the cash reserves that have been built up over the years of operations and have put us in favourable situations many times.
We do have to remember that we have significant borrowings in the form of villa unit loans and refundable accommodation deposits from our residents. Although never payable in one lump sum like bank finance can be, we need to account for the payouts that occur when residents move on. The total of these liabilities as at 30 June 2023 were $68 million.
Moving forward we are still in a difficult position not being able to attract sufficient staff to operate our facilities at full operational levels. Mostly all facilities are operating at an occupancy percentage in the low eighties. This will continue to put pressure on our finances especially now we have to meet the care minutes per day and the additional costs that comes with that.
Although difficult, the staff and Board are up to the challenge and will continue to provide the best of care and facilities to our residents as the community has come to expect.
Graham Brown OAM
Treasurer