If the sector can resolve its funding issues, there is a ‘boom time’ ahead according to Australian Unity’s latest investor presentation.
Check out the graph above.
The mutual fund is predicting an ever-increasing demand for health and aged care services as the Baby Boomer generation reaches the 80-plus age bracket.
As you can see, this will peak in 2027 – just seven years from now – when over 80,000 Baby Boomers will hit their 80th birthday.
Australian Unity forecasts that this increased demand will require $57 billion in capital costs and $30 billion in annual operating costs for hospitals and aged care by 2040 – plus 120,000 nurses and over 400,000 aged care workers.
There will be high demand for aged care, retirement communities and housing plus the workforce and logistics to make it all run.
The mutual fund is looking to tap into this demand, citing its $1.1 billion Herston Quarter project in Brisbane, established in 2017, which will see the development of a public hospital, private hospital, aged care and retirement living as well as student accommodation all on the one site.
But the figures do raise the question: what will the aged care and retirement communities of the future look like?
The Baby Boomer generation are vocal about what they want – and what they don’t. We have already seen the shared room disappear in residential care.
Our ‘DCM-2020 Prospect Profile’ will deliver most of today’s answers – it’s in the field now and you can learn more here.
