There has been a significant period of consolidation in the healthcare industry, particularly in residential aged care.

The operating environment is challenging, with high levels of regulatory scrutiny and minimal recent growth in Commonwealth funding.

These factors are driving consolidation in the sector with ASX-listed operators and well-resourced not-for-profit groups striving to reach optimal size and scale, particularly in key population centres.

Maddocks recently advised New South Wales-based aged care provider Riviera Health in the sale of its residential aged care portfolio to Japara Healthcare Limited.

Under the deal, Japara acquired five aged care facilities in New South Wales, including 507 bed licences from Riviera.

The competitive sale process saw interest from a broad cross-section of the sector.

The Maddocks team on the matter was led by Healthcare sector leader Lucille Scomazzon and partner Aaron Kloczko with Bronwyn Badcock (partner, Property), Angela Tao (senior associate, Property) and Lucy Taylor (lawyer, Commercial).