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Two aged care services firms, both founded this year, have announced a strategic merger as Melbourne-based FicusBridge and Sydney-headquartered Insights42 join forces.
With FicusBridge specialising in funding and care minute management while Insights42's expertise is in governance and reporting, the merged entity plans to step up to the challenges of increasing care needs and uncertainty around the upcoming Aged Care Act.
The full-service firm will go by the name of FicusBridge with a comprehensive offering of advisory and technology services including revenue management, governance, reporting and oversight, training and capacity support.
The merged company aims to combine their specialties to help the industry support rising demand that is likely with the Australian Institute of Health and Welfare forecasting that older people will comprise 18 per cent of the population by 2035, up from today's 16 per cent.
The announcement comes as FicusBridge prepares to launch its proprietary technology platform in early 2025, which will streamline operational workflows for aged care providers with real-time analysis and insights into funding, care minute targets and financial reporting, all contributing to the Star Rating system.
FicusBridge was founded by Dr Tanvi Dalal, bringing extensive operational and funding expertise from her roles at Estia, Mirus, and most recently as a senior executive at Signature Care.
Meanwhile, Insights42 co-founder James Price was a co-founder at Dalal's former employer Mirus, which provides advisory services and applications in the aged care sector. He helped set up the group in 2010, two years after he created the national aged care practice at PwC.
Insights42's other co-founder, Bret Duckers, also used to work for Mirus where he built its capital management practice in 2013, before going on to found Encore Care in 2015.
There he raised the necessary capital and took the roles of CEO and CFO to commence the commissioning and operations of a three-facility portfolio comprising 468 beds in Cairns, which was subsequently sold to InfiniteCare in late 2018.
The parties involve claim the timing is significant given the sector not only faces uncertainty but also critical operational challenges. Recent data shows that over half of aged care homes operate at a loss, while only slightly more than 40 per cent of services meet both their RN (registered nurse) and total care minutes targets.
Additionally, the sector must prepare for the substantial growth in Australia’s senior population, with bed numbers needed to almost double by 2043.
"Our mission has always been to empower providers with the expertise needed to deliver exceptional care while maintaining financial sustainability," says Dalal.
"By joining forces with Insights42, we're creating a partnership that brings together complementary capabilities and deep expertise to address the sector's most pressing challenges."
Price highlights the strategic importance of the merger with the sector needing robust operational systems more than ever.
"Our combined expertise will help providers navigate the complex regulatory landscape while optimising their operations for years to come," he says.
"The aged care sector faces unprecedented challenges in staffing optimisation, governance, and financial sustainability," adds Duckers.
"Our merged capabilities will help providers tackle these challenges head-on, particularly in crucial areas like managing staffing costs and maintaining operational standards."
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