BaptistCare merger the latest in a series of buyouts reshaping the sector

Following the successful merger of BaptistCare NSW & ACT and Baptistcare WA in March 2023, the boards of three more of the faith-based care providers have announced their plans to unite.

Baptcare, Baptist Care SA and BaptistCare will combine to become one of the nation's largest not-for-profit integrated care and service providers, in a move that will see the new entity's 12,000 staff serve over 38,000 customers across six Australian states and territories.

Tim Farren, current Baptcare board chair, will take on the role of chair for the new organisation, which will be officially named after a period of consultation.

“As Baptist faith-based organisations, we have a shared mission to strengthen communities by valuing people and supporting them to have hope, dignity and a fullness of life. Coming together will help us to continue to deliver that mission, while staying true to our legacy," Mr Farren said.

“We know that the sectors we operate in are under increasing pressure with greater demand for care and services and often fewer resources. In coming together, we can unlock operational efficiencies, synergies and innovations that will help to navigate these challenges and deliver real value and benefits to our workforce and our customers.”

Related stories: 70% of providers concerned about pace of Aged Care Act rollout | Aged care reform deal has been reached | BaptistCare kicks off largest aged care merger of 2023

StewartBrown's Residential Aged Care Projections July report revealed that more than half of all Australian residential aged care facilities are currently losing money, calculating aggregate losses over the past five years at approximately $5 billion, leading to a rise in the amount of mergers and acquisitions over the past two years; Opal HealthCare took over BlueCross, Australian Unity acquired myHomecare and McKenzie Aged Care joined the Bolton Clarke Group.

There's no doubt that the aged care sector is feeling the pressure of Labor's $5.6 billion reform, with providers now looking at ways to mitigate risk and fortify their financial position in anticipation of new Aged Care Act spending.

Merger CEO-elect Charles Moore said uniting the three Baptist care groups will result in far-reaching benefits, with the new entity set to cover a diverse range of care services from residential aged care, home care and retirement living to youth education, domestic violence support and drug and alcohol rehabilitation.

“Strategically, this merger will create a stronger organisation by combining our resources, expertise, and market reach. This will further enhance our services to our customers, drive innovation, amplify our mission and provide a greater breadth of career opportunities for our workforce," Mr Moore said.

“I’ll be working with our teams to integrate the best aspects of each organisation – respecting each other’s strengths, skills, cultures, communities and contributions.”

This latest BaptistCare merger is expected to be completed by March 2025.