In a surprising turn for the Australian aged care sector, February has witnessed an unanticipated spike in room price activity, bucking typical quarterly trends and signalling potential shifts in market dynamics.
According to the latest monthly industry data from Mirus Australia, which samples approximately 90,000 beds—nearly one-third of the nation’s residential aged care sector—this uptick in price adjustments has exceeded even the levels seen in January.
The data reveals a notable increase in the number of services raising their highest advertised room prices, climbing from 129 in January to 142 in February, a rise of 10.08 per cent. Conversely, the number of services increasing their lowest prices dipped slightly from 123 to 121, marking a 1.63 per cent decrease. Overall, the industry average room price edged up by 0.40 per cent, from $593,356 to $595,750. This activity is particularly noteworthy as it occurs mid-quarter, a period not traditionally associated with such adjustments, unlike the quarterly-aligned surge observed at the start of the year.
Mirus Australia’s analysis attributes this anomaly to broader sector movements, though the exact drivers remain under scrutiny. “February showed an unexpected volume of room price activity, even exceeding what was recorded in January,” the report states. “This is surprising being in the middle of a quarter while the surge in January aligned with quarterly trends.”
This price momentum comes amid other positive indicators in the sector. Occupancy rates reversed a two-month decline, rising by 0.41 per cent to 92.59 per cent nationally, driven by a 2.19 per cent increase in permanent admissions (from 4,252 to 4,345) and a 1.31 per cent uptick in respite bed days (from 165,796 to 167,969). The report anticipates further gains in March and April, traditionally the peak season for new entries into residential care.
Care delivery metrics showed stabilisation after a period of growth. Total care minutes per resident per day (PRPD) dipped marginally by 0.04 per cent to 233.40, while registered nurse (RN) minutes increased by 0.23 per cent to 47.06. Enrolled nurse (EN) minutes rose by 2.03 per cent to 7.25, and allied health minutes jumped by 7.04 per cent to 10.82. Non-care minutes in hospitality also grew by 1.56 per cent to 51.31.
Funding and claiming activities presented a mixed picture. The average daily subsidy (ADS) remained virtually unchanged at $313.18, with minor variations across metropolitan classifications (MM). Claiming activity increased by 0.33 per cent to 6.55, and voluntary claiming rose by 0.37 per cent to 4.64. However, the report cautions that recent months’ figures may appear lower due to backdated reassessment requests, which are typically uplifts processed over subsequent weeks.
Other highlights include a 4.63 per cent increase in the percentage of stays under six months to 22.79 per cent, and a 1.24 per cent rise in respite-to-permanent conversions to 49.41 per cent. The average age of new admissions slightly decreased to 85.54 years, while days from request to reassessment shortened significantly by 18.47 per cent to 16.88.
As the aged care industry navigates these developments, stakeholders will be watching closely to see if this room price spike heralds sustained inflationary pressures or is a fleeting anomaly. With seasonal boosts on the horizon, providers may find opportunities to capitalise on improved occupancy and admissions trends.
