The connection between cashflow and profit is always interesting and no more so than in aged care. Non-cash charges, facility upgrades and revenue items mean there is a low level of correlation between profit and cashflow.
Operating cashflow is assisted as both government and resident contributions to ongoing services are paid in advance, this minimises working capital requirements. On the capital side high care returns are inadequate to meet capital costs with low care and extra service bonds providing a cross subsidy for high care places.
Understanding and managing cashflow in aged care requires the insight that can only be gained from advisers who specialise in this area. Our experience in cash flow forecasting and review for our aged care clients assists our clients generate the cashflow they need to ensure sustainability of their operations and allows them to maximise the use of any excess cash liquidity.