Research Report: Market Design and Evolution for Better Outcomes: Findings from an Investigation of Mergers of Disability Service Providers

David Gilchrist, Penny Knight

Research output: Working paperDiscussion paper

Abstract

This report summarises research conducted into mergers of disability services providers during the period since 2014. It forms part of The Market Designs and Evolutions for Better Outcomes Research Program.
Key findings
The introduction of the National Disability Insurance Scheme (NDIS) and the quasi-market model on which it is based fundamentally changes the economic context in which Australia’s predominantly Not-for-profit (NFP) disability services providers operate. Disability service provides have reacted in a number of ways. Importantly for this study, over 40% have discussed merger while 7% report that they have either merged in the last year or are likely to merge in the next year.
In nearly all cases, mergers are being considered for either defensive reasons—that is, due to financial stress—or as part of explicit growth strategies. In our research, the organisations seeking growth had undertaken, or were intending to undertake, multiple mergers. These organisations had developed merger skills in the senior team and board. The development of this skills base seems to suggest that the likelihood they would participate in additional mergers in future and the probability of success of those future mergers had also increased. In other words, leading mergers requires a distinct skill set and the experience of participating in actual mergers was increasing the appetite for them and the chance of success.
Original languageEnglish
Place of PublicationPerth, Australia
PublisherNot-for-profits UWA
Publication statusPublished - 2018

Publication series

NameMarket Design and Evolution for Better Outcomes
PublisherNot-for-profits UWA

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