The mutual announced in February it was conducting a review of its aged care operations and was highly tipped by the sector to be walking away – now it announces it is staying the aged care course.
Late on Friday, the Group Managing Director, Rohan Mead, issued a media release stating Australian Unity will have a “continued focus and involvement in the aged care sector”.
However reading the release carefully, it stated that their review could not identify “marketplace approaches suited to support the operation of Australian Unity’s Better Together® model of residential care on an ongoing and sustainable basis.”
We read that to mean they could not identify any quick fixes to the business of aged care.
The group states that they will implement “a set of initiatives designed to improve and maintain near-term financial sustainability.”
In the medium to longer term, Australian Unity says they will investigate alternative commercial structuring and financial arrangements – and continue to lobby Government to provide a more supportive environment.
Australian Unity has just over 1,000 beds nationally.
The SOURCE: maybe Australian Unity has realised that residential aged care in 2026 will be a ‘rolled gold’ solid long term positive business when fee paying Baby Boomers demand swamps supply of built aged care beds (including dementia).
'Check out our bigger discussion on Australian Unity in next week’s SATURDAY broadcast on The SOURCE.
