85% of Thenot-For-Profit Aged Care Sector Is at Risk Ofprivatisation

29th July 2016

85% of thenot-for-profit aged care sector is at risk ofprivatisation

An Australasian governance industry body for Not-for-Profits predicts that 85% of aged care, disability and mental health care will be privatised over the next five years, as organisations fail to adapt to the new Commonwealth Government’s consumer directed care model, and a competitive marketplace.

Better Boards Australasia forecasts significantly reducednumbers of aged care providers, a massive shortage of care workers (60,000) and hundreds of CEO and executive job losses.

Estia Health, Japara Healthcare, Regis Aged Care and Bupa Aged Care are a few examples of new entrants in the aged care marketplace who bring significant capital and are quietly taking over a significant number of Not-for-Profit organisations.

In Victoria, many Local Councils have either opted out or are considering opting out of aged care services. In New South Wales,234 million dollars’ worth of home care services run by the StateGovernment was recently privatised, via tender. In Tasmania,an increasing number of both residential care and home care providers are amalgamating, merging or being acquired, as the State Government quietlyexits home care services.

Better Boards Australasia Chairman MichaelGoldsworthy says NFPs need to adapt or die. “Aged care is just one of a number of industry examples where privatisation and consolidation will result in less choice and reduced care, as private companies cut costs by employing fewer clinical and care staff, in part due to funding cuts and the drive for a financial return. Client and resident outcomes will be put at risk.”

“The real issue is thata private company is there for a financial dividend and the NFP is there for a social dividend. Profits go to shareholders, Not-for-Profits care for communities,” he said.

The NFPprivatisation crisis in aged care has been exacerbated by a recent 11% Commonwealth Government cut to residential aged care funding.

500Directors and CEOs from Not-for-Profit organisations willdiscuss the privatisation crisis amongst other things, at the Better Boards Conference, to be held at the Melbourne Convention Centre from 29th to 31stof July.

The Better Boards Conference is the premier governance and leadership conference for leaders of Australasia’s Not-for-profit organisations.

The conference theme,Game-Changing Moves…Governing for Maximum Impact,acknowledges the increasing number of boards, CEOs and executives that are creating new game plans and strategiesduring a significant period of Commonwealth and State Government driven transformation for all not-for-profits.

Strictly Embargoed until Friday the 29th July 2016

Melbourne interviewees and case studies:

MichaelGoldsworthy- Better Boards Australasia Chairman

Catherine Daley - Integrated Living Australia CEO

Valerie Lyons - Hesta Non- Executive Director

Estelle Fyffe - Annecto CEO

Regional Victoriainterviewees and case studies:

Deb Rantall - The Abbeyfield Society Mortlake IncCEO

Maria Palmer - Ballarat District Nursing & Healthcare Group (BDNH Group) Chairperson

Bishop John Parkes - St John’s Village Aged Care Wangaratta Chairperson

To coordinate interviews and photographs please contact:

Tony Nicholls:(03) 9844 4373 / 0400 646 010 /