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 - Starting a New Business Chapter
The barriers to entry for the industry are moderate to high and include the cost of building a nursing home, attaining approved provider status under the Aged Care Act and meeting Federal Government standards for facilities and quality of care.
Existing nursing homes can be purchased on the open market, which moderates barriers to entry. Nevertheless, there are stricter regulatory requirements for new nursing homes. Certification requires that new nursing homes average no more than 1.5 beds per room, with a maximum of two beds in any room, and that existing nursing homes have an average of no more than two beds per room with a maximum of four beds in any room... purchase to read more