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Planning ahead – the number of home care providers is about to collapse

Here is something to put in the back of your mind. Our DCM group colleague Chris Baynes is giving a webinar presentation today for 200 IT executives in the aged care space about the reforms from the Royal Commission and the impact it will have on home care and residential care.

He is proposing that the number of home care providers will collapse over the next three years. Some commentators are saying that over 700 providers could be reduced to as few as 50.

https://www.tearainstitute.co.nz/

The implications for village operators is that the remaining big suppliers will be far more powerful in negotiating to what level they will support village operators in marketing home care as a given support service in a village.

From the chart above, you can see that the 16 largest home care providers have 47% of the Home Care Packages while the 562 small home care providers have just 15% of the Packages.

The Royal Commission reforms require operators to have significantly stronger back office IT and workforce training and oversight. The smaller operators are unlikely to have the cash to make these investments.

At the same time, the home care workforce is likely to be attracted to the higher wages and culture that big operators will be able to offer with the efficiencies and easy technology they will be introducing.

Chris’ advice: keep an eye on your local home care providers and build relationships with the operators that you feel most comfortable with the quality of service but also are most likely to survive.

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