The Australian Institute of Company directors (AICD) has released its survey of 144 directors of Not For Profit organisations which revealed 40% had discussed mergers in the past 12 months.
They had either approached others or had smaller NFPs approach them to merge. Concern about financial stability was the driver in 52%v of cases. 20% expected a merger to eventuate.
Financial stability, compliance with Government requirements and Consumer Directed Care were the three major drivers for reviewing long term viability.
Across the sector it is generally it is generally believed that the 1,100 aged care operators will reduce to 500 over the medium term. If that is 10 years then 60 care providors a year will need to merge or close or one a week. Massive change.
