The ageing of Australia's population will support strong Nursing Homes industry growth
Melbourne, Australia (PRWEB) May 03, 2012
Nursing homes provide 24-hour nursing care for residents who are typically aged 70 years and older. The industry is set to expand at a strong rate, mainly due to the ageing of the Australian population. The Nursing Homes industry is expected to generate revenue of $10.6 billion in 2011-12, representing about 6.5% of total health expenditure in Australia. Industry revenue is forecast to increase 5.2% in 2011-12. Industry revenue is expected to grow at an annualised 5.7% in the five years through 2011-12. According to IBISWorld industry analyst Nigel Fitzpatrick, ‘revenue growth will result from an increase in the number of high-level care places, growth in resident charges and, to a lesser extent, growth in government subsidies’.
Nursing Homes industry revenue is expected to increase in the five years through 2016-17. Industry activity will be underpinned by growing demand from an ageing population and an increase in the average dependency of residents (i.e. requiring a higher level of nursing support). Fitzpatrick adds, ‘there is pressure on the Commonwealth Government to facilitate improved funding and profitability to encourage investment to meet growing demand’. Private expenditure on nursing homes is expected to increase in the five years through 2016-17. This means, on average, individuals will take on more responsibility for the cost of their own care. Growth in private expenditure will come from increases in the number of places, increases in annual accommodation charges and increases in daily resident fees.
The Nursing Homes industry exhibits a low level of concentration. However, concentration varies by state and territory and the industry is in the early stage of consolidation. Major players include AMP, the Victorian Department of Health, BUPA Asia Pacific, Japara Holdings, UnitingCare NSW.ACT, Regis Group and UnitingCare Queensland.
For more information, visit IBISWorld’s Nursing Homes report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry consists of nursing or convalescent home facilities (including those that provide nursing or medical care as a basic part of the service). Nursing homes, or high-care nursing facilities, provide 24-hour nursing care for residents and are staffed by registered and enrolled nurses, nursing assistants or personal care assistants.
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Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
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