Regulatory pressures are impacting smaller providers – community-founded provider to join larger non-profit

The slew of acquisitions of small to mid-sized providers by larger players has not been lost on the market or those in the sector. From Regis’ buying spree to BaptistCare’s recent acquisition in WA, smaller players have, for various reasons, been increasingly willing to sell. Rosewood’s Cabanda Care, just shy of Brisbane, is the latest provider to announce it is in the process of handing over ownership and operational responsibility to another. In this case, to Lutheran Services, Queensland’s longest running aged care and community service organisation. Residents, staff and community members alike have expressed positive sentiment towards the move, in that the RAC and retirement village will continue to operate yet the trend towards larger organisations is on the radar of advocates and provider heads of smaller operations. Many Australian seniors have chosen and thrived in smaller provider settings, and it is worthwhile for the sector to be aware of and examine the shifting make-up of the market in its ability to provide offerings to suit all needs.

Origins

Cabanda’s origins date back to 1987 when it was founded by Rosewood community members, emerging into a community-focused, high-performing service provider, with provider messaging articulating a valuing of compassion, local energy and depth of connection.

Its growth from the vision of local residents and emphasis on “strong local identity” has made it a front-runner choice for many in the local area.

Tony Lindsay, chair of the Cabanda Care Board says, “We’re proud of our community-run service, where we meet the holistic needs of our residents and clients – and have done so for almost 40 years.”

Time for change

Consistent messaging from many providers who have actioned acquisition plans is of future-proofing growth. In Cabanda’s case, the communication is in keeping with this, the board sharing that its recent undertaking of expressions-of-interest was to find an experienced not-for-profit provider who would be in a position to aid the service’s “long term sustainability.”

Cabanda and Lutheran Services leadership have shared that Lutheran Services was chosen due to an alignment of shared values, degree of experience and a commitment to sustained regional involvement.

Lindsay shares, “I’m confident we’re in good hands with Lutheran Services, who shares our commitment to best-practice, compassionate care to meet the needs of local communities.”

A sector aware

While in Cabanda’s case the public messaging has been positive, indicating an alignment of values and continued operation honouring Cabanda’s ethos, it is worthwhile for the sector to take note of the challenges that are facing smaller providers sector-wide. Seeing the markers in the journey to acquisition approval is a growing call of advocates as the market shifts.

“For Cabanda to grow into the future, we need to partner with an experienced provider to meet future regulatory changes, operational challenges and Board succession plans.”

While the new act is a once-in-lifetime change, well-respected advocates, industry leaders and peak body personnel have expressed the need to be committed to assessing the progress of the act into its implementation ‘on the ground’.

Alex Lynch of Catholic Health Australia has articulated that “getting it right” will required resources from providers, peak bodies and the sector to ensure that unintended consequences don’t derail what must go right for the vulnerable seniors at its midst.

Regulatory burden

As the acquisitions of smaller providers grow, the trend must be acknowledged by the sector and government. If concern over meeting regulatory changes are supercharging the trend away from the capacity of small, community-run providers to provide an option of excellence in care, and out of the market, there is a discussion to be at the public and sector-wide levels.

Potential residents, loved ones and advocates have spoken to Hello Leaders about the importance of the offering of small providers. There is growing concern at the environment that is seemingly blowing the winds of acquisition and swiftly changing the offering across the aged care sector.

Particularly of concern is government policy and its impact on this trend. It is worthwhile for government to take significant note of the potential regulatory burden unhelpfully changing the landscape of care excellence and the viability of small providers to operate.

Aligning values

Cabanda leadership have taken particular care in sharing the news with residents and staff. Across a series of information sessions, front-line staff, residents, provider associates and loved-ones heard the announcement and were able to ask questions.

Lutheran Services CEO Nick Ryan has addressed concern over changes by conveying he and the leadership team are expectantly looking to continue and grow on the “excellent care provided by Cabanda to residents in Rosewood and surrounds.”

“We’re honoured to continue Cabanda’s legacy and feel a strong affinity with serving regional communities,” Mr Ryan said.

“Our mission and values closely align, so we expect to make the ownership transition as seamless as possible for staff, volunteers, suppliers, community, and importantly, residents, clients, and families.”

“The Cabanda name, heritage and connection with Rosewood will continue and we extend our long-standing commitment to staff development and support to the Cabanda team.”

The 71 bed RAC and 52-unit retirement village, day respite facilities and community programs of Cabanda, is set to officially transition to Lutheran oversight early 2026. It will join the 11 aged care services Lutheran Services currently operates across Queensland.

Collective safeguarding

For advocates, and CEOs of small providers, it is not in the interest to vilify providers that acquire or those that sell. Rather it is the hope of highlighting to regulatory and policymakers, the unintended consequences of current regulatory and compliance structure on the sector and importantly, the seniors and front-line staff at its heart.

In safeguarding the regular checking of sector movements and trends, many hope to safeguard the option for Australia’s current and future seniors to have choices to enter aged care services to meet particular needs. Choice is critical for the various needs of seniors, front-line staff best fit and a thriving sector, whether home is found within the hallways of large or small providers.

Safeguarding the viability of small providers to provide excellence in care foremost, while meeting regulatory structures in consequence, must continue to be the balancing act of public policymakers.