Home Care Market Analysis Report 2020

Home
care market
analysis
2019-20 Update
September 2020
KPMG.com.au
Home care market analysis: 2019-20 2
Home care
market analysis
Following explosive growth over the last four years, KPMG’s research
into Australia’s home care market indicates that growth in new providers
has slowed substantially. Whilst the numbers of home care providers has
jumped nationally overall from 465 at 30th June 2017 to 863 providers
at 30th June 2019, there was an increase of only 49 providers in the last
twelve months.
Our approach How does 2020 compare

Since 2017, we have conducted to the prior years?
three annual reviews of 20 distinct KPMG’s 2020 research shows
geographical locations across that growth in the number of new
Australia, focusing on localities with entrants into the home care market
larger proportions of people aged 65 has slowed substantially. Across
years and over. For each location, we the 20 locations researched, there
identified providers that were offering were only 14 new providers of 366
Home Care Package services in the providers in total. Five providers
suburb for the first time, as well as focused on New South Wales, three
those offering services in previous in Victoria, Queensland and Western
years. Providers were identified Australia, and one in South Australia.1
using the My Aged Care search No new providers were identified for
engine and cross referenced against the Tasmania, the Australian Capital
the Commonwealth Department of Territory or the Northern Territory
Health’s Aged Care Providers Service locations. The new entrants were up
List. Analysis was also undertaken of to 11 per cent of all providers within
the revenue generated by providers any geographical location.
from government funded Home Care
We also examined existing Home Care
Packages over the last five years.
Package providers who were offering
It should be noted that this revenue
services in a new geography for the
data relates to government Home
first time. This analysis showed that
Care Package funding only, and does
existing providers were continuing to
not include consumer co-payments or
expand their target markets, equating
income from other government home
to around 15 per cent to 25 per cent of
care services such as Commonwealth
all providers advertising services in the
Home Support Programme. While
different geographies.
government revenue gives some
insights into market size and share, The results of our research are
it is important to recognise this does presented in Table 1 and Figure 1.
not necessarily equate to profitability.
1
One of these providers was targeting three states and one was targeting two states.
©2020 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company
limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.
Liability limited by a scheme approved under Professional Standards Legislation.
Table 1. Summary of new and existing HCP providers in the locations researched
New providers Existing providers,

new to location
State Suburb Total % new % new Number % new Number % new
2020 2017 2019 new 2020 2020 2020 2020
New South
Double Bay 88 39% 20% 5 6% 14 16%
Wales
Mosman 86 27% 15% 4 5% 20 23%
Port Macquarie 49 29% 12% 2 4% 7 14%
Locations summary 120 33% 14% 5 4% n.a. n.a.
Victoria Mornington 92 28% 13% 3 3% 17 18%
Brighton 90 20% 14% 2 2% 22 24%
Yarraville 82 28% 14% 2 2% 12 15%
Queensland Caboolture 57 35% 21% 3 5% 9 16%

Banksia Beach
53 22% 17% 3 6% 15 28%
(Bribie Island)
Maroochydore 62 29% 12% 2 3% 14 23%

Western
Dianella 60 29% 22% 4 7% 9 15%
Australia
Joondalup 51 29% 19% 1 2% 10 20%
Rockingham 44 33% 20% 2 5% 5 11%
Busselton 22 29% 12% 1 5% 3 14%
South
Victor Harbor 45 23% 24% 1 2% 6 13%
Australia
Glenelg 27 35% 26% 0 0% 7 26%
Tasmania Sandy Bay 30 7% 13% 0 0% 4 13%
Devonport 26 19% 12% 0 0% 2 8%

Australian
Capital Kaleen 36 12% 26% 0 0% 6 17%
Territory
Kambah 36 12% 26% 0 0% 5 14%
Northern
Darwin 17 0% 21% 1 6% 3 18%
Territory
Source: KPMG analysis of My Aged Care listings

Notes: ‘Locations summary’ results for new providers describe the number of Home Care Package providers listing services on My Aged Care in the suburbs
researched. Providers listing services in more than one of the researched locations have been counted once.
Figure 1. New entrants as per cent of total provider numbers at state / territory level,
2017, 2019 and 2020
70%
Per cent of providers that were new
62%
60%
50%
40%
35%
33%
30% 31%
30% 25% 26%
24%
21% 21%
18%
20% 15%
17%
14%
11%
10% 6%
4% 3% 4% 3% 2% 0% 0% 0%
0%
2017 2017 2017 2017 2017 2017 2017 2017
2019 2019 2019 2019 2019 2019 2019 2020 2019 2020
2020 2020 2020 2020 2020 2020
NSW VIC QLD WA SA TAS ACT NT
Source: KPMG analysis of My Aged Care listings
Figure 2. Number and proportion of Home Care Providers providers new to the
locations researched
Northern Territory
Queensland
Number % new
new 2020 2020 Number % new
new 2020 2020
Darwin 1 6%
Western Australia Caboolture 3 5%
Number % new Banksia Beach 3 6%
new 2020 2020
Maroochydore 2 3%
Dianella 4 7%
Joondalup 1 2%
Rockingham 2 5%
Busselton 1 5%
New South Wales

Number % new
new 2020 2020
Double Bay 5 6%
Mosman 4 5%
Port Macquarie 2 4%
Australian Capital Territory

Number % new
South Australia new 2020 2020
Number % new Kaleen 0 0%
new 2020 2020
Kambah 0 0%
Victor Harbor 1 2%
Glenelg 0 0% Victoria
Number % new
new 2020 2020
Mornington 3 3% Tasmania
Brighton 2 2% Number % new
new 2020 2020
Yarraville 2 2%
Sandy Bay 0 0%
Devonport 0 0%
Characteristics
of new providers
FOR PROFIT
THE KEY CHARACTERISTICS
2017 OF THE 14 NEW PROVIDERS
WERE:
2019
11 (79 percent) were for
profit businesses (same
as 2018).
2020
SERVICE HISTORY
2017
3 (21 per cent) were

providing other types of
2019 home care, while none
delivered retirement
living or residential care
prior to entering home
care package market (in
2020
2018, 38 per cent provided
another type of home care,
retirement living and / or
residential care).
DISABILITY SERVICES
2017
2019
9 (64 per cent) were also
targeting the disability
sector (up from 48 per
cent in 2018).
2020
MULTI-JURISDICTION
2017
12 (86 per cent) were

targeting only one
2019 jurisdiction at present,
while one provider was
targeting three states
(same as 2018).
2020
Growth in the national market

has slowed markedly
Nationally, the home care market underwent significant growth in 2017 and 2018 as Commonwealth Government reforms
reduced barriers to entry and funded more Home Care Packages. However over the last twelve months, as depicted in
Figure 3, analysis of Commonwealth data shows that annual growth rates have slowed considerably from 41 per cent in
2017 and 25 per cent in 2018 to just 5 per cent in 2019. During this period, the number of approved providers of home care
packages grew from around 490 providers in 2016 to 905 providers in 2019. Notably, this slow down occurred prior to the
arrival of COVID-19, suggesting factors such as market saturation, media scrutiny, the Royal Commission into Aged Care
Safety and Quality and the introduction of new aged care standards have had an impact. We are anticipating that COVID-19
has further impacted on sector growth during 2019 – 2020, and will assess these impacts in our next market update.
Figure 3. Number of approved home care providers in Australia, 2015 to 2019
1000 45%
900 40%
800 35%
Growth on previous year

700 30%
Number of providers
600 25%
500 20%
400 15%
300 10%
200 5%
100 0%
0 -5%
2015 2016 2017 2018 2019
No. of providers Growth on previous year
Source: KPMG analysis of aged care service provider lists, Department of Health, 2015 to 2019 and other publicly available data
Analysis of government – St Ives Care Group, which had a

revenue figures drop in revenue of $1.6 million in
Home Care Package government 2018-19, with falling revenue for its
funding for the 25 largest providers Enrich Living Services brand offset
is presented in Table 2. Collectively, by acquisitions of the growing
these providers received 44 per cent Bromilow Community Care and
of Australian Government home Sue Mann’s Community Care
care funding (the same proportion as businesses during 2018.
during 2017-18), which totalled almost – Mercy Health, which rose from the
$2.5 billion in 2018-19. The Home Care 44th ranked provider (by revenue)
Package government revenues for the to 12th following its merger with
largest providers ranged from $22.37 Southern Cross Care Victoria
million to $103.28 million in 2018-19. (SCCV) during 2018, but still
Highlights include: recorded a drop in revenue of $1.0
million from $46.6 million in 2017-
– Uniting Care Queensland received 18 to $45.6 million in 2018-19.
almost $103.3 million in government
funding in 2018-19, up $7.6 million on – The Argent Family Trust, which
the previous year (after very strong operates the Better Living
growth in 2017-18) and achieving Homecare, Let’s Get Care and
116 per cent growth in revenue Happy Living brands, grew by
over the five year period. 9222 per cent over five years from
$0.3 million in 2014-15 to $24.4
– Uniting Group New South Wales, million in 2018-19.
which had a drop in revenue of
$6.17 million, from $80.1 million in – Home Instead Senior Care franchise,
2017-18 to $73.9 million in 2018- which commenced operations in
19, but still achieved 48 per cent home care packages during 2015-16
growth over five years. and grew by 2137 per cent to reach
$22.4 million in 2018-19.
– Australian Unity, which grew in
revenue by 606 per cent over five – Eight of the 25 largest providers
years, from $10.4 million in 2014-15 recorded a decrease in government
to $73.3 million in 2018-19. revenue in 2018-19 compared to
the previous year where only one
– Silver Chain Group, which grew by provider– Feros Care – recorded
186 per cent over five years, from a decrease in 2017-18. Feros Care
$18.4 million in 2014-15 to $52.5 again recorded a decrease in 2018-
million in 2017-18, driven by strong 19. Other providers to record a
growth in the Perth and South decrease in government revenue in
Western Australian markets. 2018-19 included Uniting Group New
South Wales, KinCare, Ozcare, Villa
– Bolton Clarke, which grew by
Maria Catholic Homes and Benetas.
101 per cent over five years, from
$25.4 million in 2014-15 to $51.0
million in 2017-18, based on the
combined results of RSL Care
Limited and the Royal District
Nursing Service Limited (which
merged during 2016).
Table 2. HCP government revenue for Australia’s top 25 providers, 2014-15 to 2018-19
HCP government revenue ($million) Growth on prior year
Rank Rank
Provider 2014-15 2015-16 2016-17 2017-18 2018-19 Sparklines 2015-16 2016-17 2017-18 2018-19 Growth over 5 years
2019 2018
1 1 Uniting Group Queensland2 $47.75 $48.79 $57.61 $95.69 $103.28 2.2% 18.1% 66.1% 7.9% 116%
2 2 Uniting Group NSW/ACT3 $50.04 $62.00 $77.67 $80.08 $73.91 23.9% 25.3% 3.1% -7.7% 48%
3 7 Australian Unity4 $10.37 $13.30 $16.58 $47.48 $73.28 28.2% 24.7% 186.3% 54.3% 606%
4 5 HammondCare $32.05 $37.09 $46.83 $49.92 $53.07 15.7% 26.3% 6.6% 6.3% 66%
5 4 BaptistCare NSW & ACT $35.67 $29.95 $42.24 $50.62 $52.56 -16.0% 41.0% 19.8% 3.8% 47%
6 9 Silver Chain Group5 $18.36 $21.54 $26.81 $43.96 $52.48 17.3% 24.5% 64.0% 19.4% 186%
7 3 KinCare $37.85 $42.29 $51.06 $54.76 $51.36 11.7% 20.7% 7.2% -6.2% 36%
8 16 Bolton Clarke6 $25.42 $31.68 $36.13 $43.44 $51.03 24.6% 14.1% 20.2% 17.5% 101%
9 14 St Ives Care Group7 $33.01 $37.27 $48.44 $49.08 $47.50 12.9% 30.0% 1.3% -3.2% 44%
10 6 Ozcare $37.44 $35.97 $41.20 $48.11 $46.19 -3.9% 14.5% 16.8% -4.0% 23%
11 8 Baptcare $37.08 $38.39 $42.08 $44.23 $45.72 3.5% 9.6% 5.1% 3.4% 23%
12 44 Mercy Health8 $36.85 $36.31 $43.23 $46.61 $45.58 -1.5% 19.0% 7.8% -2.2% 24%
13 11 Integratedliving Australia Ltd $10.78 $18.15 $28.11 $35.69 $41.33 68.3% 54.9% 27.0% 15.8% 283%
14 10 Anglicare Southern Queensland $16.59 $14.69 $19.98 $36.23 $40.99 -11.5% 36.0% 81.3% 13.1% 147%
15 13 Anglicare Sydney9 $17.73 $22.73 $30.05 $34.21 $35.11 28.1% 32.2% 13.8% 2.6% 98%
16 15 Catholic Healthcare $23.16 $18.74 $25.24 $30.49 $33.32 -19.1% 34.7% 20.8% 9.3% 44%
17 17 Calvary Care Group $20.73 $14.10 $21.90 $29.31 $33.12 -32.0% 55.3% 33.8% 13.0% 60%
18 18 Care Connect $18.86 $17.24 $21.51 $27.87 $31.79 -8.6% 24.8% 29.5% 14.1% 69%
19 20 Resthaven $13.04 $13.72 $20.44 $25.61 $28.26 5.3% 49.0% 25.3% 10.4% 117%
20 25 Uniting AgeWell $12.29 $9.69 $20.42 $23.33 $26.89 -21.2% 110.8% 14.2% 15.2% 119%
21 21 Villa Maria Catholic Homes10 $17.85 $17.53 $23.31 $25.54 $25.47 -1.8% 33.0% 9.6% -0.3% 43%
22 19 Feros Care $20.59 $23.49 $32.76 $26.79 $24.58 14.1% 39.5% -18.2% -8.3% 19%
23 70 Argent Family Trust11 $0.26 $1.58 $1.81 $6.22 $24.40 504.7% 14.1% 244.6% 292.1% 9222%
24 41 Home Instead Senior Care12 $- $0.55 $12.48 $22.37 n.a. n.a. 2157.8% 79.3% 2137%
25 22 Benetas $20.41 $21.66 $22.86 $23.91 $22.37 6.1% 5.6% 4.6% -6.5% 10%
Source: KPMG analysis of aged care service provider lists, Department of Health, 2015 to 2019

2
Group consists of Blue Care, Wesley Mission Brisbane and Australian Regional and Remote Community Services.
7
Group consists of Enrich Living Services (formerly St Ives Care), Bromilow Community Care and Sue Mann’s Community Care.

3
Group consists of Uniting (NSW and ACT) and Wesley Mission NSW.
8
Southern Cross Care Victoria (SCCV) merged with Mercy Health on 1 July 2018. The revenue reported is in this table is that recorded for both Mercy Health and SCCV.

4
Australian Unity acquired NSW Home Care on 1 July 2016.
9
Anglicare Sydney merged with Anglican Retirement Villages to form Anglicare on 1 July 2016. The revenue reported is in this table is that recorded for Anglicare only.

5
Group consists of Silver Chain and the Royal District Nursing Service (RDNS).
10
Catholic Homes for the Elderly merged with the Villa Maria Society to form Villa Maria Catholic Homes on 1 July 2015.

6
RSL Care Limited merged with the Royal District Nursing Service Limited to form Bolton Clarke on 15 June 2016. The revenue reported is in this
11
Trading as Better Living, Let’s Get Care and Happy Living.
table presents the combined revenue of both providers. 12
Franchise consisting of multiple legal entities. Results reported are for the combined franchise government revenue.
©2020 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.
Recent market entrants

Finally, the updated analysis of the Home Care Package related government funding reported for recent service
providers. Table 3 presents the Home Care Package government funding of the 10 largest recent service providers,
being those who entered the aged care market during 2016-17 or 2017-18. These providers have continued to gain
market share, with the largest receiving $22.4 million during 2018-19. Eight of the 10 were for-profit providers, and
two of these were franchise businesses.
While most achieved relatively low revenues during 2016-17, all received government funding of $3 million or more
during 2018-19, and all except Prompt Care increased their funding by over $1 million from 2017-18 to 2018-19.
Four of these recent entrants were ranked in the top 100, compared with two in 2018. While the top 10 recent
entrants accounted for just 0.9 per cent of total funding in 2017-18, by 2018-19 their market share had grown to
2.9 per cent of total government funding.
Table 3. Top 10 recent market entrants in 2018-19
Government HCP funding $million
Rank Rank Growth on

Provider 2016-17 2017-18 2018-19
2019 2018 previous year
24 41 Home Instead Senior Care13 $0.55 $12.48 $22.37 79%
41 128 Pearl Home Care14 $0.36 $6.05 $12.21 102%
55 143 HomeCare South Brisbane $0.11 $3.06 $8.84 189%
84 265 FiveGoodFriends $- $1.15 $6.13 434%
109 251 Manning Support Services $0.00 $1.33 $4.88 269%
143 294 Prestige Inhome Care $0.01 $0.94 $3.55 278%
146 176 ComLink $0.72 $2.31 $3.48 51%
152 111 Prompt Care $3.41 $4.01 $3.37 -16%
155 195 IPC Health $0.94 $2.05 $3.30 61%
160 320 Sunny Care Home Services $- $0.81 $3.10 281%
Source: KPMG analysis of aged care service provider lists, Department of Health, 2015 to 2019

13
Franchise service, with revenue figures based on those reported for the different legal entities operating under the Home Instead Senior Care brand

14
Rebranded from Home Care Assistance. Franchise service consisting of multiple legal entities.
Summary
KPMG Australia’s 2019-20 market research highlights the increasingly competitive nature of the Home
Care Package sector. While the largest providers – many of which are well established not for profit
organisations – continue to be dominant, recent entrants and others are growing market share. Some
of this growth has been gained from established providers. Recent mergers and acquisitions are
helping others grow their market share; it remains to be seen whether this equates to sustainability.
As highlighted by recent Aged Care Financial Performance Survey results, profit levels deteriorated
for the period to October 2019 to March 2020, revenue decreased and direct care staff hours also
decreased.15 There is a risk therefore that as Australia responds and recovers from COVID-19, growth
in government revenue may be masking deeper issues about profit and sustainability.
In a year of extraordinary national and international events, it can be expected that COVID-19 will impact
on growth and revenue. KPMG’s next market update will examine these impacts in depth.
15
StewartBrown. Aged Care Financial Performance Survey Sector Report (March 2020).
Contact us
Nicki Doyle
Partner,
Health, Ageing & Human Services
T: +61 2 9335 7794
E: [email protected]
Stephen Morris
Associate Director,
Health, Ageing & Human Services
T: +61 8 9263 7509
E: [email protected]
KPMG.com.au
The information contained in this document is of a general nature and is not intended to address the objectives, financial situation or needs of any particular individual or entity. It is provided
for information purposes only and does not constitute, nor should it be regarded in any manner whatsoever, as advice and is not intended to influence a person in making a decision, including,
if applicable, in relation to any financial product or an interest in a financial product. Although we endeavour to provide accurate and timely information, there can be no guarantee that such
information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a
thorough examination of the particular situation.
To the extent permissible by law, KPMG and its associated entities shall not be liable for any errors, omissions, defects or misrepresentations in the information or for any loss or damage suffered
by persons who use or rely on such information (including for reasons of negligence, negligent misstatement or otherwise).
limited by guarantee. All rights reserved.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.
September 2020. 553806002IGH

Home Care Market Analysis Report 2020

Uploaded by

Copyright:

Available Formats

Home Care Market Analysis Report 2020

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Home Care Market Analysis Report 2020

Uploaded by

Copyright:

Available Formats

Home

Our approach How does 2020 compare

New providers Existing providers,

Port Macquarie 49 29% 12% 2 4% 7 14%

Locations summary 120 33% 14% 5 4% n.a. n.a.

Victoria Mornington 92 28% 13% 3 3% 17 18%

Brighton 90 20% 14% 2 2% 22 24%

Yarraville 82 28% 14% 2 2% 12 15%

Locations summary 114 30% 15% 3 3% n.a. n.a.

Queensland Caboolture 57 35% 21% 3 5% 9 16%

Locations summary 79 35% 17% 3 4% n.a. n.a.

Rockingham 44 33% 20% 2 5% 5 11%

Busselton 22 29% 12% 1 5% 3 14%

Locations summary 69 62% 21% 2 3% n.a. n.a.

Glenelg 27 35% 26% 0 0% 7 26%

Locations summary 53 31% 24% 1 2% n.a. n.a.

Tasmania Sandy Bay 30 7% 13% 0 0% 4 13%

Devonport 26 19% 12% 0 0% 2 8%

Locations summary 38 25% 11% 0 0% n.a. n.a.

Locations summary 36 18% 26% 0 0% n.a. n.a.

Source: KPMG analysis of My Aged Care listings

NSW VIC QLD WA SA TAS ACT NT

Source: KPMG analysis of My Aged Care listings

New South Wales

Australian Capital Territory

3 (21 per cent) were

12 (86 per cent) were

Growth in the national market

Figure 3. Number of approved home care providers in Australia, 2015 to 2019

Growth on previous year

No. of providers Growth on previous year

Analysis of government – St Ives Care Group, which had a

HCP government revenue ($million) Growth on prior year

Recent market entrants

Table 3. Top 10 recent market entrants in 2018-19

Government HCP funding $million

Rank Rank Growth on

24 41 Home Instead Senior Care13 $0.55 $12.48 $22.37 79%

41 128 Pearl Home Care14 $0.36 $6.05 $12.21 102%

55 143 HomeCare South Brisbane $0.11 $3.06 $8.84 189%

84 265 FiveGoodFriends $- $1.15 $6.13 434%

109 251 Manning Support Services $0.00 $1.33 $4.88 269%

143 294 Prestige Inhome Care $0.01 $0.94 $3.55 278%

146 176 ComLink $0.72 $2.31 $3.48 51%

152 111 Prompt Care $3.41 $4.01 $3.37 -16%

155 195 IPC Health $0.94 $2.05 $3.30 61%

160 320 Sunny Care Home Services $- $0.81 $3.10 281%

You might also like