Aged care facilities are being rationalised with Not For Profit operators receiving strong interest in NSW, SA and VIC

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Achieving aged care ‘scale’ seems to be the operative words across Australia. Anglicare ACT & South & West NSW, when making the decision to sell out of aged care, refers to an independent study they commissioned which stated that “a notional target of 1,000 beds is generally accepted to achieve a breakeven portfolio”. They have placed five facilities with 394 residential aged care beds up for sale – and have received over 30 expressions of interest. Port Augusta City Council wants to privatise two facilities and a village. They have received five submissions in six weeks. The Victorian government has outlined plans to privatise government owned aged care beds to deliver a potential saving $75M. They are being sold one by one with the latest acquisition being by Southern Cross Care. While there are benefits to scale, many operators have demonstrated that individual care facilities can be sound, profitable businesses.