The Boards of QLD based RSL Care and Victorian based RDNS announced today they will merge, creating an operation valued at $1 billion with revenue of $500M.

RSL Care CEO Steve Muggleton will lead the new entity. He tells us the strategy was hatched by the boards just four months ago (July) and since then parallel independent due diligence and legal teams have been working on the project.

Accelerating change in the aged care sector, significant increase in demand and competition were drivers in the decision. Muggleton cited the key opportunity to converge into a ‘flexible, seamless, integrated business that will have a multiplier effect’.

“We are multiplying our capability and reach of service by bringing together two innovative and trusted organisations. The new merged organisation will be beautifully positioned to provide a range of flexible services to a growing aged population across Australasia”.

He points out that 70,000 new aged care beds and 80,000 home care services will be required in the next 10 years plus 14,000 retirement living units within 15 years.

Board Chairman of RSL Care, Mr Pat McIntosh, and RDNS Board Chairman, Mr Paul Montgomery, said the decision to combine strengths would give customers access to a comprehensive continuum of services from home nursing and support, through to retirement living and residential care. They put forward this merged capability:

•         More than 6,000 staff plus over 400 volunteers
•         Working with more than 25,000 customers every day
•         More than 4 million home visits made to clients every year
•         Provision of Veterans’ support to more than 22,000 people per annum
•         Delivery of more than 25,000 episodes of care using telehealth
•         An asset base of more than $1 billion and combined revenue of approx. $500M
•         Combined reach and influence in communities across Australia, operations in New Zealand and a recognised presence in Asia
•         Strong delivery in research, innovation and design with RSL Care complementing the industry-leading research conducted by the RDNS Institute
•         A Registered Training Organisation courtesy of RDNS’ Education and Learning Centre

Muggleton says the group will also be looking to innovate in the delivery of subacute services, including in partnerships with hospitals.

“The broad range of clinical services also allows the organisation to provide practical solutions like chronic disease management, hospital avoidance programs, transition care and rehabilitation for Local Hospital Networks and Primary Health Networks.”

Amongst the many points of significance is the ‘presence’ this new group will have and the fact that it is an ‘independent Not For Profit’ operator.

Nearly all Not For Profit aged care providors are limited by their history and constitutions to local regions or states. Few cross borders, limiting their field of influence. This group will have a significant presence in Victoria and QLD, a presence in NSW, a big operation in NZ and an emerging operation in China.

Their independence combined with a Not For Profit status and mission frees them from short term shareholder demands and allows for longer term strategic decisions – and fast decisions as demonstrated.

Muggleton states they have a strong balance sheet and they want to both develop and grow by acquisition. RSL Care also has its recently created relationship with Generation Healthcare who are on board for further capital funding by splitting operations from assets.

“By bringing together our expertise and research capacity, we can build our understanding of customer experiences and create innovative services that better support customers and promote independence.”

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