Aged Care Consolidation

Per the September 2023 Aged Care Sector analysis issued by KPMG, smaller providers continue to exit the market due to increasing regulatory requirements and an inability to remain financially sustainable. It is expected that significant market consolidation will occur.

Another key insight states: “to reach optimal operational and business performance, it will be critical for providers to have systems that can analyse data, support efficient operations and reporting plus innovative models for the delivery of support operations.”

Intech3 specialise in mergers and acquisitions within the Australian Aged Care industry, with it’s genesis dating back to Regis Aged Care’s merger with Macquarie in 2007. At the time, this made Regis Aged Care the second biggest provider in the country.

Intech3 has also led the IT aspects of demerger projects whereby providers have sold assets per the consolidation being experienced in the industry and developed IT strategy to ‘right size’ the technology to lower TCO, drive efficiencies and allow businesses to rebound.

In a recent demerger project, Intech3 provided a holistic outsourced model to facilitate the project deliverables and develop future state IT strategy, delivering on the ‘innovative model’ of support operations recognised as a necessity by KPMG. Services included:

• Virtual CIO who integrated with the Executive Team and provided IT strategy for the demerger and future state
• General Manager of IT who ran the day-to-day operations of the IT Department
• Fully outsourced Helpdesk and Support team to allow the business to scale down labour costs as assets were reduced, without compromising on quality of support
• Right sizing IT Infrastructure and Business Systems requirements for future business model
• Provided around $750k of ‘business as usual’ cost savings over, equating to a 19% reduction in IT Budget