MARKET SUMMARY REPORT AUSTRALIA AGED CARE SECTOR STILL GOING THROUGH CONSOLIDATION As at December 2022, the number of individuals accessing Home Care Packages witnessed a significant increase, reaching 235,999 people, representing an increase of 19%. The rise can be attributed to the Australian Government’s release of an increased number of packages. The increase in supply into the market has resulted in a reduction of people waiting for a Package at their approved level, with 37,894 people waiting for a Package at their approved level at December 2022, a decrease of 45% in 12 months. Government funding in this sector increased by 23% between FY21 and FY22. This growth is aligned to government policy and consumer preference to remain at home for as long as possible. However, the supply growth is challenged by a very tight labour market and increasing competition amongst providers to attract and retain home care workforce. In FY22, there was a net decrease in the number of providers, falling from 867 in FY21 to 846 in FY22 (19 new entries, 40 exits). The chart below shows historical growth in the number of consumers across the country. This growth is equivalent to a CAGR of 24% over FY18 to FY22, as shown in the chart below. The difference in growth between the Home Care Package consumers (24 percent) and total demand (Home Care Package consumers + waitlist, 15 percent) indicates that unmet demand is slowly decreasing as more packages are released into the market. Both growth measures exceed growth in the 80 years and over population over the same timeframe, which was 3.2 percent, reiterating the fact that there has historically been significant unmet demand. Home Care Services: NUMBER OF HOME CARE CONSUMERS + WAITLIST 40,777 53,203 61,337 72,062 215,743 176,105 142,436 106,707 56,750 91,847 CAGR+15% CAGR+24% HCP consumers People on waitlist FY18 FY22 FY21 FY20 FY19 22 BUSINESS OVERVIEW 1 3 4 5 6 AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2023
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