Australian Unity is now one of Australia’s largest home care providers after successfully acquiring a key government care division in a $114 million deal.
In a statement to the ASX issued on Friday, Australian Unity said that it had finalised the transfer of Home Care Services of NSW (Home Care) from the NSW government.
The deal will see the transfer of more than 4,000 staff and 50,000 annual clients from the 70-year-old Home Care to Australian Unity.
According to the NSW government this is the first significant transfer of ageing, disability and home care (ADHC) to the non-government sector.
“The government’s key objective has been to select a provider who can deliver continuity of service and prepare Home Care for the national aged care reforms and the National Disability Insurance Scheme (NDIS),” a NSW government statement said.
The home care business has a network of 42 branches with 107 office locations.
Under the agreement Aboriginal Home Care will retain its “important and unique identity”.
Derek McMillan, chief executive of Australian Unity’s independent and assisted living, said Australian Unity’s initial focus in this transition is to maintain continuity for all clients.
“Australian Unity will strive for continuity of service with regards to home care operations and seek to provide increased levels of care as clients’ needs change,” Mr McMillan said.
“Central to this ambition is to build a business based on a true continuum of client-directed care. Combined with our 'better together' model of service, we believe the transfer enables us to provide the best possible outcomes for both our new clients in NSW, and of course additional options for our existing for personal-use only home care clients.”
The official transfer follows the announcement made in August 2015 that Australian Unity had successfully won the tender to meet the NSW government’s objective of a provider who can deliver continuity of service and prepare Home Care for the NDIS and the national aged care reforms.
Last year, Australian Unity acquired INS Health Care in NSW, the home care division of The INS Group.
Australian Unity is a 175-year-old mutual company, whose members are its customers and staff. The company has no external shareholders and distributes profits back into developing products and services.