The objective of the research was to determine the costs associated with the delivery of residential aged care services by an efficient operator in a typical, modern operating environment. These costs were then compared to the expected income generated from a typical modern, efficient facility. Between May and September 2011, Grant Thornton collected and collated detailed financial and operational data from residential aged care providers based on strict selection criteria for the year ending 30 June 2010. This report summarises the findings from this research.