Corrs notes Chinese opportunities for aged care
March 25, 2015 | Aged Care Finance
Australia isn't the only country dealing with the difficulties of an ageing population – China is also set to face difficulties in the near future.
However, this signals a financial opportunity for Australian aged care service providers, according to a recent trends release published by Corrs Chambers Westgarth.
The rapidly growing Asian country now represents the biggest opportunity for Australian providers, and the announcement of a Free Trade Agreement (FTA) only serves to strengthen the possibilities.
A growing population problem
Like Australia, the number of people over the age of 65 is rapidly rising in China. According to Corrs, growth is also set to be significantly higher than Australia, expanding from 8 per cent currently to 25 per cent by 2050.
The organisation explained that social trends underpin Chinese aged care growth, with the traditional model of in-home and family-based care under threat as cities start to attract younger generations – leaving older relatives outside of the major population areas.
"More elderly Chinese will need to pay for aged care services in the future rather than rely on their families for care and support," the report explained.
What does the FTA mean?
Under the new agreement, Australian providers (wholly-owned) will be able to establish facilities in China to care for Chinese citizens. Under the old system, Australian providers could only work in partnership with domestic Chinese providers.
This means there's an opportunity for Australian aged care facilities to bring across useful practices and processes that have proven to be successful Down Under, and perhaps bring several back.
"Australian operators have the expertise to assist with the design and construction of aged care homes and retirement villages, train staff and ultimately manage and operate the facilities."
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