Industry Analysis & Industry Trends
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 expected to continue expanding, mainly due to Australia's ageing population. By 2051, nearly 20.0% of Australia's population is expected to be aged over 70.
Australia's ageing population suggests that industry revenue should grow strongly. However, the industry's performance has been partly restricted by budget constraints and target provision ratios, which control the expansion of funded aged-care places.
The Nursing Homes industry is expected to generate revenue of $10.7 billion in 2014-15, following annualised growth of 5.2% over the past five years... purchase to read more
Industry Report - Industry Investment Chapter
The industry has low capital intensity and high labour intensity of operation. Just under 60.0% of annual industry revenue is allocated to labour costs, including payments to primary care givers and support staff. Industry depreciation charges absorb about 5.0% of annual revenue. The industry spends $11.59 on labour requirements for every dollar invested into capital purchases.
There are few opportunities to use technology to reduce labour costs, other than in administrative tasks. Capital costs principally relate to the ownership costs of constructing or upgrading premises. Capital intensity can vary by organisation according to personal care needs of residents, building costs and the level of outsourcing used... purchase to read more