Nursing Homes in Australia Industry Market Research Report Now Updated by IBISWorld

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An ageing Australian population is driving demand for aged-care facilities. For this reason, industry research firm IBISWorld has updated its report on the Nursing Homes industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Industry performance has been partly restricted by budget restraints and expansion controls.

Nursing homes provide 24-hour high-level care for residents typically aged over 70 and for severely disabled younger people. The industry has grown strongly over the past decade and is set for continued expansion, mainly due to the ageing of the Australian population. By 2051, nearly 20.0% of Australia's population is expected to be over 70 years of age. Australia's ageing population suggests that industry revenue should grow strongly. However, IBISWorld industry analyst Arna Richardson states, “The industry's performance has been partly restricted by budget constraints and target provision ratios that control the expansion of funded aged-care places.”

The Nursing Homes industry is expected to generate revenue of $11.6 billion in 2013-14, following annualised growth of 4.9% over the past five years. This comes on the back of an increase in the number of high-level care places from 40 to 44 per 1,000 people aged 70 and over. The introduction of the Aged Care Funding Instrument resulted in a large increase in claims, forcing the government to resort to clawback measures. The government introduced new measures to scale back subsidies beginning 1 July 2012. This explains slower industry revenue growth during 2012-13 and 2013-14 (a forecast 3.1%) compared with earlier years. The number of aged-care residents is forecast to grow over the five years through 2018-19, leading to strong revenue growth. According to Richardson, “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).” There is pressure on the Federal Government to improve funding and profitability and encourage investment to help meet growing demand.

The Nursing Homes industry exhibits a low level of market share concentration. There are a large number of small operators in the industry. However, the industry is in the early stage of consolidation, with major private sector players making acquisitions and building new facilities in the past five years. The industry’s major players are Fairway Investment Holdings, BUPA Australia Healthcare Holdings, AMP Limited and the Victorian Department of Health. For more information, visit IBISWorld’s Nursing Homes report in Australia industry page.

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IBISWorld industry Report Key Topics

The industry consists of nursing or convalescent home facilities, including those that provide nursing or medical care as a basic part of the service. These high-care facilities provide 24-hour nursing care for residents and are staffed by registered and enrolled nurses, nursing assistants or personal care assistants. The industry excludes hospice operation.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
IBISWorld
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