Going Backwards: The Shocking Financial Reality of Support at Home with Stu Hutcheon

So, so all these changes came through on the 1st of November.

We were making money in this space.

Now we're not.

Can you walk us through where did the revenue go?

Yes.

Yeah.

Great point.

So it's all about the revenue we've been talking about for a while, but everyone knew the revenue.

The revenue situation was we've lost our package management revenue.

We basically halved, if you like, our care management revenue.

And then we've got our direct services revenue and we had to set a new price.

And, you know, essentially what we've been talking about is increasing price between 38, 40% or increasing revenue between 38 and 40% to offset the loss of those two revenue line items.

And that gap between that surplus we were hitting around that $3 mark to getting to a year to date 58 cents, which is the nine months, including a bit of support at home.

The gap really sits about the increase in your service revenue, your hourly rate revenue.

hasn't met the reduction in care management and package management by about $2 per client per day.

And why is that? What are the key drivers to that? The absolute fear that is in the marketplace with consumers around the price rise.

The co-contribution has been huge and we know we're going to move personal care from 1 October, you know, the rules are going to change around that.

But that those two particular things has driven an absolute reduction in package usualization.

So therefore a reduction in revenue, which is just the big call out.

The model around what's included in a support at home package as opposed to a home care package around ATHM or some of the services you might have put in your previous package.

Yeah, your techs, yeah.

Homeowners and tech.

Yeah, homeowners and tech.

And also some of the things you could put in your, under your home care package that you can't put in now has also impacted, but I would say ultimately the utilization rates are down and now quarterly utilization rate was 62%.

A year ago, we're at 85%.

So, so all these changes came through on the 1st of November.

We were making money in this space.

Now we're not.

Can you walk us through where did the revenue go?

Yes.

Yeah.

Great point.

So it's all about the revenue we've been talking about for a while, but everyone knew the revenue.

The revenue situation was we've lost our package management revenue.

We basically halved, if you like, our care management revenue.

And then we've got our direct services revenue and we had to set a new price.

And, you know, essentially what we've been talking about is increasing price between 38, 40% or increasing revenue between 38 and 40% to offset the loss of those two revenue line items.

And that gap between that surplus we were hitting around that $3 mark to getting to a year to date 58 cents, which is the nine months, including a bit of support at home.

The gap really sits about the increase in your service revenue, your hourly rate revenue.

hasn't met the reduction in care management and package management by about $2 per client per day.

And why is that? What are the key drivers to that? The absolute fear that is in the marketplace with consumers around the price rise.

The co-contribution has been huge and we know we're going to move personal care from 1 October, you know, the rules are going to change around that.

But that those two particular things has driven an absolute reduction in package usualization.

So therefore a reduction in revenue, which is just the big call out.

The model around what's included in a support at home package as opposed to a home care package around ATHM or some of the services you might have put in your previous package.

Yeah, your techs, yeah.

Homeowners and tech.

Yeah, homeowners and tech.

And also some of the things you could put in your, under your home care package that you can't put in now has also impacted, but I would say ultimately the utilization rates are down and now quarterly utilization rate was 62%.

A year ago, we're at 85%.