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The Situation Analysis Of Australian Aged Care Industry

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The aged care industry of Australia provides the older Australians with a wide range of care services. The objective of this industry is to provide the appropriate level of care to the older persons when they require as they age. The purpose of the report is to evaluate the Australian aged care industry. A detailed analysis of the industry shall be carried on. The Calvary Health Care has been selected as the organization for the case study.

Market size and trends:

The Australian Health Care Service has revenue of $6.9bn with an annual growth of 4%. The industry experiences a profit of $962.7m. The Health care services in this industry are not substantial enough to form their own industry[1]. The health services are therapy, podiatry, psychology and speech therapy. In addition to this, the services also include blood bank operation and community health centre operation.

If the recent trend is considered, it has to be said that the industry has been growing supported by the health insurance membership and the greater coverage of the service by private health insurers and the Australian ageing population. The revenue has been increasing by a compound annual rate of 4% every year[2].

Political factor

Australia has a stable governmental and thus the operating organizations work under a free and stable condition. In fact, the health care organizations are often funded and supported by the governmental grants.

Economic factor

Australian economy is in a growing stage. The GDP and the per capital income of people are high compared to other developed countries. This automatically provides better opportunities to the people to utilize basic health care rights[3].

Socio-cultural factor

People are educated and are health conscious. They spend considerable amount of money in keeping themselves fit and also support regular check-ups. People are also aware of the importance of insurance claim and they have coverage for the same.

Technological factor

The technological factors like better equipment for treatment and better connectivity have also helped in improving the working of the health care organization.

Financial and Corporate Performance:

If the participation of this industry in profit making of the country is considered, it has to be said that over the next five years the profit margin is expected to remain constant. The health care industry is expected to drive benefits and greater focus has been made on the other health diagnostic spheres as well. These include health therapies, dietician services and psychological services. These things automatically add to the revenue of the country. The industry is growing and it accounts to be of $6.9 bn. Of this, 24.8% of the revenue comes from the people who are above 65 years[4]. The aged care residential service has also been increasing in the country that is counting directly to the corporate performance.

SWOT & Competitive Advantage:


Calvary was established in 1885 by six courageous sisters who set to work as nurse and serve the sick. Calvary today has ensured its growth and development in terms of health and aged care services and has established its services as Little Company of Mary Health Care Ltd.

SWOT analysis:


It is a non-profit charitable organization and has strength of 12,000 staffs and volunteers and operates in 15 public and private hospitals along with 15 retirement and aged care facilities. The organization gets support of the national network.


As it is a non-profit organization, sometimes it run out of the much needed fund that help the organization to carry out their responsibilities.


With the increase of economic stability and the capability of the people to support their health care and the increase of health insurance, there are opportunities for this organization to get privatized completely or partially. This shall help them in funding and they shall be able to provide their service well. The increasing health epidemics and the increasing health issues like obesity are increasing the need of this industry.


The major threat is the increasing competition in the health care service. Many hospitals and care centers have also been established in the country that has been providing good health care services to the people. The major competitors are ShiftWise, Indian Health Board of Minneapolis, Cahoon Care Associates, LLC and others[5].

Core competencies:

The core competencies of Calvary health care include its mission and vision and the strong sense of welcoming people. The organization has a rich heritage of its service that is guided by values and hospitality. The organization has its unique heritage and has been serving people right since the days of its operation[6]. The health care experts and the other people associated with this health care are the core people that have been the reason behind the successful operation of this organization in the country.

Strategic Options:

The organization has set specific strategic options for the years to come. For instance, they want to leverage their service in the health care and want to provide the service in a unique way. The aim of the health care organization is to invest in the technology to assist them in building a high reliability culture and envisage quality culture to provide benefits to the health users and diagnose them with the chronic diseases and to those who are at the end of their lives[7]. 

Possible Recommendations:

  1. To become partially privatized: As it has been evident that more people are now able to afford their health care, there remain opportunities for the Calvary Health Care to privatize a part of its operation.
  2. To collaborate with other private hospitals: The organization is not collaborated with many hospitals and thus there remains the opportunity for the organization to gain better response in the society and would be able to serve the one in need[8].
  • To explore in better technological sphere: There is no doubt that with the advancement of technology, there remain better options for the organization to improve their activities and serve the people in the right way.


With the detailed analysis it can be said that the need for the health care in Australia for the older people has been increasing in the recent time. The increasing epidemic and diseases like obesity has created greater opportunities for the aged care and other health care institutes to operate in the country. It has been found that the Calvary aged health care has a number of core competencies that has helped the organization to combat against the intense existing competitors in the country. In terms of strategic option, it has been proposed that the organization might consider to become privatized.



Age Care in Australia 2016

Arna Richardson ,’ Age Care Residential Service in Australia’, January 2015. IBIS world industry report Q8601.

Calvary 2017

Drummond, Michael F., Mark J. Sculpher, Karl Claxton, Greg L. Stoddart, and George W. Torrance. Methods for the economic evaluation of health care programmes. Oxford university press, 2015.

Forbes, Helen, and Elizabeth Watt. Jarvis's Physical Examination and Health Assessment. Elsevier Health Sciences, 2015.

Lawrence, David, Kirsten J. Hancock, and Stephen Kisely. "The gap in life expectancy from preventable physical illness in psychiatric patients in Western Australia: retrospective analysis of population based registers." Bmj 346 (2013): f2539.

Loritsch, Claudia, Natalia Molini, James Pound, Grant Uranie, and Emma Waters. "Strategic Marketing Plan." (2015).

McGorry, Patrick, Tony Bates, and Max Birchwood. "Designing youth mental health services for the 21st century: examples from Australia, Ireland and the UK." The British Journal of Psychiatry 202, no. s54 (2013): s30-s35.

ealth Sciences, 2015.

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