An increase in the elderly population is driving industry growth
Melbourne, Australia (PRWEB) June 05, 2013
Nursing homes provide 24-hour high-level care for residents typically aged over 70 and for severely disabled younger people. According to IBISWorld industry analyst Nigel Fitzpatrick, “the industry has displayed strong growth through the past decade and is set for continued expansion, mainly due to the ageing of the Australian population”. By 2051, nearly 20% of Australia's population is expected to be above 70 years of age. Australia's ageing population suggests that the Nursing Homes industry should grow strongly. However, its 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 $11.5 billion in 2012-13, up by 5.5% annualised over the past five years. “This comes on the back of an increase in the number of high-level care places”, says Fitzpatrick. The introduction of the Aged Care Funding Instrument resulted in a large increase in claims, forcing the government to resort to clawback measures. To do so, the government introduced new measures to scale back subsidies beginning 1 July 2012. The industry exhibits a low level of concentration, with the major players – Fairway Investment Holdings Pty Ltd, AMP Limited, BUPA Australia Healthcare Holdings Pty Limited, Victorian Department of Health and Japara Holdings Pty Ltd – accounting for only a small share of the market.
The number of aged-care residents is forecast to grow over the next five years. 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.
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). These 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. This industry excludes hospice operation.
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