Bupa Expands In Australia

Bupa, a giant health insurer from the United Kingdom, has announced its expansion in Australia. The company said it is investing some $500 billion earmarked for acquisitions.

The investment would start with the purchase of Dental Corporation for a cool $374 million. Dental Corporation is the biggest dental chain in Australia with close to 200 clinics in the country and New Zealand. The dental chain also earns annual revenue of some $400 million.

Bupa is also setting its eye on the aged care business of Innovative Care. It operates some 10 residential homes for the aged and manages more than 1,000 beds in Queensland, New South Wales, and Victoria. Victoria’s Croft family owns Innovative Care.

According to Paul Gregersen, Innovative Care is a strong business and excellent operations providing strong care for people with dementia. Gregersen is Bupa Australia’s manager.

Some reports also indicate that Bupa is also eyeing Lend Lease, the aged-care business of Regis Group, which manages more than 2,300 beds. Bupa, however, has not confirmed the news.

Bupa’s entry in the private health insurance business means Bupa and Medibank are the major players in the industry, controlling more than half of the market.

In a similar update, Mental Health and Ageing Minister Mark Butler announced that aged-care providers are required to publish their accommodation prices online, including their website. Aged-care providers are also required to secure approval for the government if they want to charge more than $85 for every day’s stay.

Butler said even an amount of more than $50 a day requires justification.