Catholic not-for-profit Calvary has been cleared to acquire Tasmania’s largest aged care provider, Southern Cross Care, after a national regulator determined it was “unlikely” the sale would “substantially” reduce competition in the sector.
The decision by the Australian Competition and Consumer Commission (ACCC), published late last month, clears the way for the Archdiocese of Hobart to sell Southern Cross Care (SCC) to Calvary Health Care.
The approval comes after Calvary was in August given the green light to acquire Hobart Private Hospital from Healthscope.
Applications for a review of the ACCC’s determination must be lodged by this Friday, November 6. If none are received, the acquisition can formally go ahead.
In its decision, the ACCC acknowledged that the sale “materially increases Calvary’s position in the supply of residential aged care” in Tasmania, but said the organisation would still face competition from other providers.
“The aggregation resulting from the acquisition in the supply of retirement living communities and home care services is not significant,” the determination read.
Calvary, which also owns four private hospitals across Tasmania, currently operates two aged care facilities and a retirement village in Launceston and will now take over SCC’s 21 sites, as well.
These include Fairway Rise at Lindisfarne, Yaraandoo at Somerset, and Rivulet in South Hobart, plus 13 retirement villages.
It was announced in January that SCC had sold its Rosary Gardens aged care home at New Town to the state government for a reported $33m.
The Tasmanian branch of the Australian Nursing and Midwifery Federation (ANMF) has told its members employed in SCC facilities that Calvary had advised there would be “no immediate changes” as a result of the acquisition and there was “currently no intention” to move away from employees’’ existing enterprise agreement.
The ANMF has pledged to keep staff abreast of any developments relating to the transaction, acknowledging in a member bulletin that “announcements of this nature can create uncertainty and concern for employees”.
In outlining the proposed agreement between Calvary and SCC in September, Calvary chief executive Damien Bruce said the provider would be “honoured to continue supporting the communities [SCC] serve and build on their legacy”.
At the time, SCC chair Sonya Beyers said the deal “reflects [SCC’s] commitment to ensuring the organisation remains well-positioned for the future”.
SCC ran an operating deficit of $1.8m in 2024-25 but reported a net surplus of about $38m after a number of property revaluations, according to its most recent annual financial report lodged with the Australian Charities and Not-for-profits Commission.
Meanwhile, Calvary suffered a $138.7m loss over the same period, while generating about $247m in revenue from its Tasmanian hospitals, including at Lenah Valley and South Hobart.
Like other private hospital and aged care providers, SCC and Calvary are reliant on government grants and subsidies, which accounted for more than two-thirds of the former’s total revenue and 40 per cent of the latter’s operating revenue in 2024-25.