DHS sought to improve the living standards of residents, generally with psychiatric conditions, mental illness and disability; that were accommodated in privately owned boarding houses or SRF. Proposed changes to licensing were expected to significantly increase operating costs of SRF. There was a perception private providers were making sufficient profits to cover these increases. The operators asserted the increased costs would result in closures as many SRF already operated at a loss.

Undertook a detailed analysis and consultation with the SRF operators and DHS, collecting multi-year financial records from operators and identified the real costs and revenues for the sector. 

We costed a range of funding options for DHS to deliver services to these clients based on a variety of housing options that included purpose-built government operated hostels and institutional care. We recommended the provision of capital and non-capital grants to operators of SRF to improve living conditions and the provision of HAC style care packages for the residents to improve their quality of life.  

Financial Analysis Supported Residential Facilities (SRF) in South Australia 

Client: Dept of Human Services South Australia