Increases in government subsidies will support industry growth.
Melbourne, Australia (PRWEB) October 15, 2012
Many people spend their later, more-dependent years in a residential aged-care facility. Australia's population is ageing, which means more people will require aged care in the years ahead. However, demand for residential aged-care places will be softened to some extent by an increase in life expectancy, accompanied by later onset of frailty, and by an increase in aged-care services provided in the home and community. The Accommodation for the Aged industry is expected to generate revenue of $3.78 billion in 2012-13, which will be 2.8% higher than in 2011-12. Revenue is expected to grow by an annualised 2.9% in the five years through 2012-13. According to IBISWorld industry analyst Nigel Fitzpatrick, “this growth will be due to increases in government subsidies, resident charges and the number of high-level care residents in hostels”.
Industry revenue is forecast to grow over the next five years to 2017-18. “Population ageing is expected to promote growth in demand for residential aged-care accommodation”, says Fitzpatrick, “but more so for nursing homes than hostels”.
The top three operators in the Accommodation for the Aged industry in Australia are UnitingCare NSW.ACT, UnitingCare Queensland, and Victorian Department of Health. In general, government organisations, church groups, charitable organisations and private individuals run hostels. The industry therefore has a low level of market share concentration. Private for-profit hostels are predominantly owner-operated. Large companies with activities in residential aged care tend to focus more on nursing home-type care. The Victorian Government is a major provider of aged-care residential places. The privately operated supported accommodation sector is fragmented with a large number of small operators.
For more information, visit IBISWorld’s Accommodation for the Aged report in Australia industry page.
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IBISWorld industry Report Key Topics
The industry consists of establishments that provide long-term care accommodation or homes for senior citizens where nursing or medical care is not provided as a major service. While hostels predominantly provide low-level care, many also provide some high-level care, often to allow residents to stay in the same facility as their care needs increase.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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