The financial press has been alive this week with the failure of the big private hospital and pathology operator Healthscope, with a turnover of $900 million, in its proposed purchase of Victorian-based aged care operator Arcare, with 14 facilities and over 1000 staff. The professional investor institutions claim Healthscope, a public company, was paying up to 100% more than it should for Arcare. If it had gone ahead, the owners, John Russell, Graham Knowles and Ian Ball, would have made a killing. This would have been on top of the $329 million they received from Stockland when they sold their ARC group of villages exactly 2 years ago this week.
Healthscope CEO Bruce Dixon states they are ready to start construction of 400 beds immediately [given government approval].
Opinion
RIP: We are seeing the death of the family-run aged care operator
It feels like I am writing an obituary to family-run aged care facilities. Once the backbone of the sector, multi-generation operators are now selling out at a pace not seen before. The sell-off is accelerating, with three landmark deals in just two...
