Chris Hall, CEO of MercyCare in WA predicts in AAA Magazine that the Not For Profit residential aged care market share will drop from 60% to 30% over the next 10 years and private operators will fill the gap up to 60%. (Government operators will claim the remaining 10%).

He says all the drivers are external. He points to the government promoting consumer demand driven business models, generating greater competition, plus the government’s preference for larger aged care organisations which reduce risk and require fewer bureaucrats to manage, and increasing complexity of business when government funding is declining.

At a recent Better Boards conference half the aged car delegates raised their hands to say they are currently exploring or considering an amalgamation or merger.