MARKET REPORT SUMMARY AUSTRALIA AGED CARE SECTOR REFORMS While average occupancy in residential care has been trending down in recent years, in the longer term the demand for all aged care services and support required by older Australians, including subsidised services, will continue to expand with the ageing of the population. The number of older Australians requiring aged care services is expected to increase as the population ages. In the near term, the impacts of the baby boomer generation moving into their 70s and 80s will be particularly marked. A key driver of aged care spending is the number of people over the age of 70. The number of people aged 70 and over is expected to more than double over the next 40 years, reaching around 6.9 million people by 2060/61. FACTORS Increasing global population & higher life expectancy Global spending on health continually rose Physical challenges of old age & unhealthy lifestyles in working age people have led to an increasing prevalence of NCD & chronic conditions Greater availability of healthcare treatments “Medical tourism” is becoming an increasingly common trend CONSUMER RESPONSE Public become more health-conscious Shift away from reactive to prevention maintenance Higher demand for primary / long term care, regenerative treatment, home / wearable healthcare devices etc. Evolving trend on consumer healthy lifestyle Higher demand for an ideal health care experience TRANSFORMATION IN HEALTHCARE Holistic individual health approach Smaller size hospital requirement: fewer visit (increase in virtual) & higher demand for specialize hospital (vs multi-disciplinary hospital) Primary & community-led health services Digital technology as part of health & social care transformation Healthcare providers not only competed within the territories, now the competition is global. (Reference to: i. World Economic Forum. Predictions 2022: What are the biggest healthcare shifts? Here’s what health experts think. ii. World Health Organisation. 2021 Ageing and health. iii. Deloitte Insight. 2021 Global health care outlook: Accelerating industry change. iv. Deloitte Insight. 2021 Breaking the cost curve. v. World Health Organisation. 2020 Global spending on health: Weathering the storm.) NON-DEMOGRAPHICS FACTORS DEMAND AGED CARE SECTOR REFORMS AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2021 060
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