industry & policy
applications, one key takeaway often stands out: in many instances,
new RAC developments are burgeoning side by side in catchments
with an existing statistical oversupply.
The implications of this depend on which side of the coin
the stakeholder is sitting: customer/resident or provider. For
residents and families, a new abundance of choice and quality
accommodation is a welcome change. For providers though,
it may create challenges for business cases and real world,
long-term occupancy.
CHALLENGES FOR NFPS AND OTHER INCUMBENTS
Build it and they will
come … or will they?
Are new RAC developments
being built in locations that best
respond to customer need?
By Safdar Ali
T
he Department of Health recently announced the 2018–19
Aged Care Approvals Round and that an invitation to apply
for 13,500 residential aged care places, 775 short-term
restorative care places and up to $60 million in capital grants is
expected soon.
Residential aged care (RAC) building activity has skyrocketed
since legislative reform transformed the industry on 1 July 2014.
One of the key reforms was enabling providers to set
accommodation prices to market. A protection for consume