Apollo Care CEO Stephen Becsi has taken aged care leaders through his company’s business model, which has been able to turn around small, failing providers while maintaining their brands.
At the LEADERS SUMMIT 2022, Stephen told the audience how Apollo Care purchases smaller aged care operators – usually ones that are struggling – and “de-risks” them, taking on administrative and financial responsibilities and re-investing to turn the businesses around while leaving the providers’ brands intact.
According to Stephen, this provides an alternative to shutting their doors or selling to a larger Not For Profit that may subsume their brand and goodwill.
“Those small, in the main Not For Profit aged care organisations have three options: continue to struggle with the more stringent demands on them, and then eventually still have to close down or sell out. If you don’t close down and you haven’t been able to survive, you sell out,” he said.
Stephen said that this is made possible in part by Apollo being a digitally-based organisation with no head office, allowing flexibility and saving money; he added that the company does not take on operators with fewer than 40 beds.
“40 beds plus, we can make work, and we don’t have head office costs – we’re not taking the cost of bricks and mortar in an expensive city, plus all the staff, and spreading that across the businesses that make the money, the nursing homes,” he said.
Apollo Care last year bought three homes from PresCare after PresCare’s parent organisation, the Presbyterian Church of Queensland, called in receivers.