New co-operative model bolsters aged care sustainability in regional Australia

In a groundbreaking move for regional aged care, the Murrumbidgee Aged Care Network Co-operative was officially registered on 6 July 2025, marking a significant step towards ensuring the sustainability of residential aged care services across the vast Murrumbidgee region in New South Wales.

Covering approximately 125,000 square kilometres from the Snowy Mountains to the northwest plains and along the Victorian border to Wentworth, this co-operative unites seven small, community-based aged care providers under a shared services model – one of the first of its kind in Australia.

Supported by the federally funded Care Together program, delivered by the Business Council of Co-operatives and Mutuals (BCCM), the initiative addresses critical challenges faced by regional aged care providers, offering a potential blueprint for the future of aged care across Australia.

The challenges of rural care

Providing aged care in regional and rural areas like the Murrumbidgee region presents unique and formidable challenges. Unlike urban centres, rural aged care facilities often operate with limited resources, smaller staff pools, and higher operational costs due to their geographic isolation.

Recruitment and retention of qualified staff are persistent issues, with rural areas struggling to attract skilled workers who may prefer the amenities and opportunities of larger cities. As a result, there are hundreds of elderly people in regional areas remain stranded in public hospitals, waiting for aged care placements due to shortages in capacity and staffing at any given time.
The administrative burden on small providers has also intensified, particularly following the Federal Government’s review of aged care legislation, which introduced stricter compliance and reporting requirements. For facilities like Cypress View Lodge in Coleambally, these pressures threaten their viability.

Karen Hodgson, the steering committee lead and manager of Cypress View Lodge, told ABC Riverina on 10 March 2025, “If I hadn’t made the connections I have now – if we weren’t about to launch this project – I’d still be fighting this battle alone.” The risk of closure looms large for many small providers, which are vital not only for caring for the elderly but also as key employers in their communities.

Scarce resources exacerbate these issues. Limited access to IT support, training programs, and funding means that facilities often outsource critical functions at significant cost or divert management time away from direct care.

The isolation of rural communities also means residents may face long travel times to access healthcare services, making local aged care facilities essential for allowing people to age in place.

Without sustainable solutions, the closure of these facilities could force elderly residents to relocate far from their communities, disrupting their social connections and quality of life.

A collaborative solution

The Murrumbidgee Aged Care Network Co-operative was born out of necessity, as small providers recognised that collaboration was key to their survival.

The co-operative model centralises administrative functions such as compliance, recruitment, financial reporting, and IT support, enabling members to reduce duplication, cut outsourcing costs, and focus on delivering high-quality, place-based care. “We’re all meeting the same standards. We’re all answering to the same Commission,” Hodgson explained. “If our co-operative becomes an expert in this  – why not help others?”

The initiative, supported by the Care Together program, allows the seven participating providers to remain independent while pooling resources to achieve economies of scale.

This shared services model frees up management time, which can be redirected towards improving care quality and exploring innovative approaches to staffing challenges, such as joint training programs or recruitment campaigns tailored to rural contexts.

As Melina Morrison, CEO of BCCM, stated, “Co-operatives are often born out of necessity – when it’s clear you have to co-operate to survive. If you want care that’s place-based and responsive, you have to devolve power to the people delivering it.”

The co-operative’s development has been methodical, with key milestones achieved by December 2024, including finalising a business plan, conducting a comprehensive risk analysis, and establishing governance structures.

By March 2025, the steering committee had formalised the co-operative’s rules, paving the way for its official registration in July. The co-op aims to be fully operational by the end of the financial year, with ongoing efforts to secure funding and expand its membership base to ensure long-term sustainability.

Benefits and implications

Even in its early stages, the co-operative is yielding tangible benefits. Some providers have reported reduced outsourcing costs, while others have used the additional time and resources to restructure operations for greater efficiency.

For example, centralising compliance processes has alleviated the administrative burden on individual facilities, allowing managers to prioritise resident care. As Hodgson noted, “Older Australians ageing in small regional communities deserve the same high standards of care as those in larger urban communities, so it is vital we find ways to ensure the sustainability of services like ours.”

While the Murrumbidgee Aged Care Network Co-operative is a local solution, success would also serve as a demonstration on how collaboration can enhance efficiency without compromising community-focused care.

This is particularly critical as Australia’s ageing population grows, with the Australian Institute of Health and Welfare projecting that the number of people aged 65 and over will increase by 54% between 2022 and 2032, placing further strain on aged care services.

Looking aheadThe registration of the Murrumbidgee Aged Care Network Co-operative marks a significant milestone, but the journey is far from over. In the coming months, the co-operative will focus on operationalising its shared services, strengthening governance, and exploring additional funding opportunities to ensure its longevity.

The steering committee, led by Hodgson, remains committed to fostering collaboration and mutual support among members, with the goal of creating a sustainable, high-quality aged care sector that allows residents to age in place with dignity.