Future of aged care provision: Stephen Judd

HammondCare Chief Executive, Dr Stephen Judd has warned there would be winners and losers in the aged care sector this year thanks to increased competition, as changes announced by the Government continue to roll out.

He also predicted the number of aged care places provided by the not-for-profit (NFP) sector in Australia was likely to halve within the next decade as larger players come into the Australian market.

“Today about 60 per cent of aged care providers are from the church and charitable sector but within a decade it could be closer to 30 per cent," Dr Judd said.

“The next ten years will witness a significant change in the provision of aged care in Australia which is already attracting bigger players and private operators.

“Far more services are being publicly listed which introduces new capital and new challenges into the space. These for profit companies will have greater access to capital than churches and charities today so growth will occur more with publicly listed companies.

“The lesson for charities is that in order to be charitable, we do have to be businesslike.”

Who are the winners and losers?

Dr Judd said increased competition in aged care will mean only providers who offer exceptional quality, a differentiated product or who compete well on price will survive.

“Quality is less about chandeliers and silver service and more about clinical excellence and meeting and exceeding the wants and needs of the older person.

“Providers who offer a differentiated and specialised service will stand out in this market – but providers who offer a one stop shop or one size fits all will not survive.

“There will always be providers who seek to compete on little else but price. Sadly, some people aren’t looking for a niche service or a premier ride – they just don’t want to spend much money!

“But providers competing on price need to realise that remaining competitive in this area will always be time-limited by the market.”

Celebrating 20 years

Dr Judd celebrated 20 years as Chief Executive at HammondCare last month. Under his leadership, HammondCare has grown from an organisation with revenue of $8m with less than 250 clients to $178m in revenue last financial year and more than 3000 clients.

Read more about trends and issues affecting the future of aged care from Dr Stephen Judd on the Health and Aged Care blog