Aged care accommodation pricing options and the profitability of aged care facilities

Adam Fahey; Hassan F. Gholipour; Sharon Yam; Muhammad Najib Razali

doi:10.1108/PM-10-2022-0080

Aged care accommodation pricing options and the profitability of aged care facilities

Adam Fahey, Hassan F. Gholipour, Sharon Yam, Muhammad Najib Razali

Western Sydney University

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

Abstract

Purpose" This 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/approach" Data are obtained from 33 aged care facilities across New South Wales in Australia. This study uses multivariate regression for analyses. Findings" The 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/value" These 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.

Original language	English
Pages (from-to)	544-553
Number of pages	10
Journal	Property Management
Volume	41
Issue number	4
DOIs	https://doi.org/10.1108/PM-10-2022-0080
Publication status	Published - 28 Jul 2023

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© 2023, Emerald Publishing Limited.

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title = "Aged care accommodation pricing options and the profitability of aged care facilities",

abstract = "Purpose{"} This 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/approach{"} Data are obtained from 33 aged care facilities across New South Wales in Australia. This study uses multivariate regression for analyses. Findings{"} The 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/value{"} These 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.",

author = "Adam Fahey and Gholipour, {Hassan F.} and Sharon Yam and Razali, {Muhammad Najib}",

note = "Publisher Copyright: {\textcopyright} 2023, Emerald Publishing Limited.",

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doi = "10.1108/PM-10-2022-0080",

language = "English",

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AU - Gholipour, Hassan F.

AU - Yam, Sharon

AU - Razali, Muhammad Najib

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Y1 - 2023/7/28

N2 - Purpose" This 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/approach" Data are obtained from 33 aged care facilities across New South Wales in Australia. This study uses multivariate regression for analyses. Findings" The 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/value" These 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.

AB - Purpose" This 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/approach" Data are obtained from 33 aged care facilities across New South Wales in Australia. This study uses multivariate regression for analyses. Findings" The 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/value" These 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.

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DO - 10.1108/PM-10-2022-0080

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VL - 41

SP - 544

EP - 553

JO - Property Management

JF - Property Management

IS - 4

ER -

Aged care accommodation pricing options and the profitability of aged care facilities

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