Hostname: page-component-78c5997874-t5tsf Total loading time: 0 Render date: 2024-11-07T06:27:08.725Z Has data issue: false hasContentIssue false
  • English
  • Français

Exploring aged care business models: a typological study

Published online by Cambridge University Press:  12 November 2015

EREZ NUSEM ,
CARA WRIGLEY  and
JUDY MATTHEWS
EREZ NUSEM*
Affiliation:
Queensland University of Technology, Brisbane, Australia.
CARA WRIGLEY
Affiliation:
Queensland University of Technology, Brisbane, Australia.
JUDY MATTHEWS
Affiliation:
Queensland University of Technology, Brisbane, Australia.
*
Address for correspondence: Erez Nusem, Queensland University of Technology, 2 George St, Brisbane, QLD 4000, Australia E-mail: [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

Australian providers of aged care are facing a rapidly ageing population and growth in demand for services. Beyond a sheer increase in consumers and major regulatory changes from Federal Government, many customers are becoming progressively discontented with a medically dominated model of care provision. This period of turbulence presents an opportunity for new entrants and forward-thinking organisations to disrupt the market by designing a more compelling value offering. Under this line of inquiry, the researchers conducted a qualitative content analysis study of over 37 Australian aged care organisations, clustering providers into six business model typologies. The study revealed that providers of aged care are becoming increasingly aware of emerging customer needs, and, in addressing these needs, are seeking to establish innovative models of care provision. This paper therefore presents a future model of care, along with implications for practice and policy.

Keywords

ageing populationvalue propositionbusiness modelhealthy life expectancyhealthy ageing
Type
Articles
Information
Ageing & Society , Volume 37 , Issue 2 , February 2017 , pp. 386 - 409
Creative Commons
This is a work of the U.S. Government and is not subject to copyright protection in the United States.
Copyright
Copyright © Cambridge University Press 2015

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Allison, M. 2012. Bupa Set to Become Australia's Largest Private Aged Care Provider. Media release, 21 December, Media and Corporate Communications Manager, BUPA. Available online at www.bupa.com.au [Accessed 18 December 2014].Google Scholar
Australian Associated Press 2007. UK's BUPA Enters Aussie Aged Care Sector. Media release, 3 October. Available online at www.agedcarecrisis.com [Accessed 18 December 2014].Google Scholar
Beatty, S. and Talpade, S. 1994. Adolescent influence in family decision making: a replication with extension. Journal of Consumer Research, 21, 2, 332–41.CrossRefGoogle Scholar
Boillat, T. and Legner, C. 2013. From on-premise software to cloud services: the impact of cloud computing on enterprise software vendors’ business models. Journal of Theoretical and Applied Electronic Commerce Research, 8, 3, 39–58.CrossRefGoogle Scholar
Bowen, H. and Wiersema, M. 1999. Matching method to paradigm in strategy research: limitations of cross-sectional analysis and some methodological alternatives. Strategic Management Journal, 20, 7, 625–36.Google Scholar
Bowling, A., Dieppe, P., Hanlon, P. and Muirie, J. 2005. What is successful ageing and who should define it? BMJ: British Medical Journal, 331, 7531, 1548–51.CrossRefGoogle Scholar
Bury, M. and Taylor, D. 2008. Towards a theory of care transition: from medical dominance to managed consumerism. Social Theory and Health, 6, 3, 201–19.CrossRefGoogle Scholar
Buys, L. and Miller, E. 2012. Active ageing: developing a quantitative multidimensional measure. In Boulton-Lewis, G. and Tam, M. (eds), Active Ageing, Active Learning. Springer, Dordrecht, The Netherlands, 103–18.CrossRefGoogle Scholar
Christensen, K., Doblhammer, G., Rau, R. and Vaupel, J. W. 2009. Ageing populations: the challenges ahead. Lancet, 374, 9696, 1196–208.CrossRefGoogle ScholarPubMed
Department of Health and Ageing 2012. Living Longer. Living Better. Australian Government Department of Health and Ageing, Canberra.Google Scholar
Elo, S. and Kyngäs, H. 2008. The qualitative content analysis process. Journal of Advanced Nursing, 62, 1, 107–15.Google Scholar
Head, B. 2013. New era dawns for aged care. Media release, 4 April. Business Review Weekly, 38–40.Google Scholar
Hope, P., Bamford, S. M., Beales, S., Brett, K., Kneale, D., Macdonnel, M. and McKeon, A. 2012. Creating Sustainable Health and Care Systems in Ageing Societies. Report of the Ageing Societies Working Group, The Global Health Policy Summit.Google Scholar
Kaye, L. W., Butler, S. S. and Webster, N. M. 2003. Toward a productive ageing paradigm for geriatric practice. Ageing International, 28, 2, 200–13.CrossRefGoogle Scholar
King, D. 2007. Rethinking the care–market relationship in care provider organisations. Australian Journal of Social Issues, 42, 2, 199–212.Google Scholar
King, D., Mavromaras, K., Wei, Z., He, B., Healy, J., Macaitis, K., Moskos, M. and Smith, L. 2012. The Aged Care Workforce 2012: Final Report. Australian Government Department of Health and Ageing, Canberra.Google Scholar
KPMG International 2013. An Uncertain Age: Reimagining Long Term Care in the 21st Century. KPMG International, Amstelveen, Netherlands.Google Scholar
Llewellyn, G., Balandin, S., Dew, A. and McConnell, D. 2004. Promoting healthy, productive ageing: plan early, plan well. Journal of Intellectual and Developmental Disability, 29, 4, 366–9.CrossRefGoogle Scholar
Mayhew, L. 2011. Increasing longevity and the economic value of healthy ageing and longer working. In Stillwell, J. and Clarke, M. (eds), Population Dynamics and Projection Methods. Springer, Dordrecht, The Netherlands, 165–92.CrossRefGoogle Scholar
Mayring, P. 2004. Qualitative content analysis. In Flick, U., Kardorff, E. V. and Steinke, I (eds), A Companion to Qualitative Research. Sage, London, 266–9.Google Scholar
McDonald, R. E. 2007. An investigation of innovation in nonprofit organizations: the role of organizational mission. Nonprofit and Voluntary Sector Quarterly, 36, 2, 256–81.Google Scholar
Merlino, J. and Raman, A. 2013. Health care's service fanatics. Harvard Business Review, 91, 5, 108–16.Google ScholarPubMed
Mulgan, G. and Albury, D. 2003. Innovation in the Public Sector. HM Government Paper, Prime Minister's Strategy Unit, London.Google Scholar
Osterwalder, A. 2004. The business model ontology: a proposition in a design science approach. PhD thesis, Ecole des Hautes Etudes Commerciales, University of Lausanne, Lausanne, Switzerland.Google Scholar
Osterwalder, A. and Pigneur, Y. 2010. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Wiley, Hoboken, New Jersey.Google Scholar
Peel, N., Bartlett, H. and McClure, R. 2004. Healthy ageing: how is it defined and measured? Australasian Journal on Ageing, 23, 3, 115–9.CrossRefGoogle Scholar
Prahalad, C. and Ramaswamy, V. 2004. Co-creation experiences: the next practice in value creation. Journal of Interactive Marketing, 18, 3, 5–13.CrossRefGoogle Scholar
Ratcliffe, J., Laver, K., Couzner, L., Cameron, I. D., Gray, L. and Crotty, M. 2010. Not just about costs: the role of health economics in facilitating decision making in aged care. Age and Ageing, 39, 4, 426–9.CrossRefGoogle ScholarPubMed
Richardson, S. and Martin, B. 2004. The Care of Older Australians: A Picture of the Residential Aged Care Workforce. Flinders University, Adelaide, Australia.Google Scholar
Rowe, J. and Kahn, R. 1997. Successful aging. The Gerontologist, 37, 4, 433–40.CrossRefGoogle ScholarPubMed
Salomon, J. A., Wang, H., Freeman, M. K., Vos, T., Flaxman, A. D., Lopez, A. D. and Murray, C. J. L. 2012. Healthy life expectancy for 187 countries, 1990–2010: a systematic analysis for the Global Burden Disease Study 2010. Lancet, 380, 9859, 2144–62.CrossRefGoogle ScholarPubMed
Simons, R. 2010. Stress-test your strategy: the 7 questions to ask. Harvard Business Review, 88, 11, 93–100.Google Scholar
Sok, P. and O'Cass, A. 2011. Achieving superior innovation-based performance outcomes in SMEs through innovation resource–capability complementarity. Industrial Marketing Management, 40, 8, 1285–93.CrossRefGoogle Scholar
Thurmond, V. A. 2001. The point of triangulation. Journal of Nursing Scholarship, 33, 3, 253–8.CrossRefGoogle ScholarPubMed
Urban, R. 2012. Bupa in $250 m aged care takeover. The Australian Business Review, 22 December. Available online at www.theaustralian.com.au [Accessed 18 December 2014].Google Scholar
Van den Hoonaard, W. C. 2008. Theoretical Sampling. In Given, L. M. (ed.), The SAGE Encyclopedia of Qualitative Research Methods. Sage, Thousand Oaks, California, 874–75.Google Scholar
Walker, A. 2006. Active ageing in employment: its meaning and potential. Asia-Pacific Review, 13, 1, 78–93.CrossRefGoogle Scholar
Weerawardena, J., McDonald, R. E. and Mort, G. S. 2010. Sustainability of nonprofit organizations: an empirical investigation. Journal of World Business, 45, 4, 346–56.CrossRefGoogle Scholar
Weerawardena, J. and Mort, G. S. 2001. Learning, innovation and competitive advantage in not-for-profit aged care marketing: a conceptual model and research propositions. Journal of Nonprofit and Public Sector Marketing, 9, 3, 37–41.Google Scholar
World Health Organization 2002. Active ageing: a policy framework. The Aging Male, 5, 1, 1–37.CrossRefGoogle Scholar