Not For Profits win big in home care allocations. Private operators win big in residential aged care – especially Opal

Analysis by the ideal consultancy of last week’s Department of social services (DSS) allocation of home care packages and aged care beds makes interesting reading, especially in light of the short-term and long-term value of these licences.
Home Care: While 108,000 home care packages were applied for only 6653 were released, or one for every 17 applications. Across 136 proved providers NFP operators scored 5,616 (85%) while private home care providers scored just 982 (15%). Just 18 received 100 or more packages.
With Consumer Directed Care just seven months away and an expectation that private operators will grab market share from NFPs, this could indicate NFPs are not willing to have that market share taken from them. But you may be supported by the government.
The Uniting Church NSW topped the list with 331 packages. Close behind however was private operator KinCare with 303 packages. Maybe fewer private operators but bigger looking forward.
Residential care: 19,000 applications were made and 11,196 residential care places were allocated. NFPs received 4212 (38%) and private operators one 6864 (62%). Opal (previously known as Domain Principal) receive 966 places or 9%. Next was Thompson Health Care (466 places), Japara (465), ICL Operations (462), TLC Aged Care (445), Moran (407), BUPA (239) and Regis (159).
The largest NFP was St Vincent’s at 208 places.
Opal CEO Gary Barnier was understandably excited. He immediately announced Opal will invest $250 million across 11 residential aged care homes in NSW and QLD, topping up what he describes as the largest residential aged care development pipeline. Opal has 60 facilities across four states, delivering 5200 beds.
Opal is privately owned 47% by AMP Life and 47% by the Singaporean investor Goh Geok Khim, who bought his share for $137 million last year.