Ryman Healthcare: Profit and Risk Management in an Aging Society
We are living in an aging society. In most countries in the developed world, birthrates have been falling since the 1960s, and the average working population age has increased. As the fraction of the population requiring support in old age has increased, and the proportion of workers who can save and pay taxes has shrunk, there have been huge changes in how society provides for its retirees. Among the most pressing issues is suitable accommodation. Ryman Healthcare, a listed New Zealand company, has monetized wealth in retirees' property to provide specialized housing. It has performed well financially and provided homes for thousands of seniors. What were the risks in its business model and its options for expansion, for instance into China?