Financial Sustainability in Aged Care – Time to Rethink Non-Labour Costs

August Consulting was pleased to host a roundtable at the Aged Care Week Conference in Sydney, bringing together leaders across the sector to discuss one of the most pressing challenges - financial sustainability.

While rising costs and increased regulatory scrutiny are creating pressure across aged care, there are practical ways to improve financial performance. One of the most overlooked areas? Non-labour operational costs, which can account for up to 22% of total expenditure.

For many providers, this represents a significant opportunity to drive efficiency without compromising the quality of care.

Four Key Questions to Consider:

1. Do you have true visibility of your spend? Understanding what is driving your costs is essential. You can’t manage what you can’t see, and consolidating your data into meaningful insights is the first step.

2. Is there a clear plan in place? Financial improvement requires a documented strategy with measurable targets. Are you confident in what you can bank on over the next 12 months?

3. Are your systems and processes reform-ready? With reforms continuing to reshape the landscape, providers need robust systems to manage associated providers, maintain compliance, and mitigate risk.

4. Do you have the right capabilities in-house? Many organisations are exploring innovative models such as Procurement as a Service to access specialist skills, market insights, and commercial expertise that can accelerate results.

   
   

At August Consulting, we’re passionate about supporting aged care organisations to build financial resilience and be ready for what comes next.

Aged Care Week - The Future of Aged Care