Adam Fahey, Hassan F. Gholipour, Sharon Yam, Muhammad Najib Razali
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Aged care accommodation pricing options and the profitability of aged care facilities
PurposeThis study investigates the relationship between aged care accommodation pricing options (refundable accommodation deposits (RADs), daily accommodation payment (DAPs) and concessional) and the profitability of aged care facilities.Design/methodology/approachData are obtained from 33 aged care facilities across New South Wales in Australia. This study uses multivariate regression for analyses.FindingsThe estimation results suggest that higher level of RADs has a negative and significant relationship with profitability of aged care facilities. The authors also find that concessional pricing option is positively associated with higher profitability.Originality/valueThese findings may benefit aged care operators by reviewing their strategies and portfolios to enhance their financial performance. The results are also useful to the Australian Government to further explore how the removal of RADs may transform the aged care sector's profitability.
期刊介绍:
Property Management publishes: ■Refereed papers on important current trends and reserach issues ■Digests of market reports and data ■In-depth analysis of a specific area ■Legal updates on judgments in landlord and tenant law ■Regular book and internet reviews providing an overview of the growing body of property market research