Financial Information


the businesses

Abano operates in two separate areas of the rehabilitation market – Residential and Community Rehabilitation and Orthotics. These businesses provided 18 percent of Abano’s revenue for the 2007 financial year.


Abano owns 100 percent of three businesses in the Residential and Community rehabilitation sector. Health Partners, offering assessment services; Ranworth, providing residential rehabilitation and supported accommodation, particularly for those with brain injuries; and Burtons, providing clinical interventions to community-based clients.

More than 200 staff are employed across 11 residential and community facilities within New Zealand.

Revenue is 84 percent ACC-funded, 15 percent DHB and a small private component.


Abano also owns 100 percent of Orthotic Centre NZ. The Orthotic Centre is New Zealand’s foremost supplier of Orthotic services and specialist products, with locations in Auckland, Hamilton and Wellington.

Orthotics is the scientific field dedicated to providing appropriate corrective, assistive and supportive devices for individuals with musculoskeletal disorders. The Orthotic Centre operates in three areas – clinical services, wholesale product sales and manufacturing services.

Revenue is 9 percent ACC and 76 percent DHB-funded with 15 percent private.

operational performance


highlights and significant events

  • Lease agreements signed for new and expanded facilities in Whangarei, West Auckland, South Auckland and Palmerston North.
  • Once occupied, this will reduce the number of facilities, but increase the number of residential beds by 18, from 98 to 116, gaining more beds and economies of scale at a smaller number of premises.
  • Certification granted for the maximum period of three years following the improved Ranworth quality systems, contract compliance and documentation management.
  • Stabilised revenue and costs for Burtons and Health Partners, completing the restructure.
  • Strong industry conference presence through sponsorship and exhibition stand at national conference.

the market

The residential and community rehabilitation sector operates in a fixed-price environment, with a strong focus on delivering services purchased under specific contracts. Abano Rehabilitation works closely with ACC, the major funder, at a national, regional and local level to maintain relationships and secure ongoing referrals.

ACC is planning major changes to residential contracts in 2008, and there may be opportunities for Ranworth, which provides residential care to patients with brain injuries, to provide services to a wider range of residential clients with complex needs.

Total client numbers for Abano Rehabilitation have been relatively constant over the past two years, however, the range of residential clients has changed and revenue has increased.

Recruitment and retention of clinical staff remains a challenge across the sector and impacts on all Abano’s residential and community rehabilitation businesses.

There are national shortages of all groups of clinical staff and all are on the Immigration long-term skill shortage list. The costs of employing clinical staff continue to rise as DHBs, competing in the same recruitment markets, drive up pay rates. Abano Rehabilitation has been successful in recruiting qualified staff from overseas, and is developing a number of initiatives to reduce staff turnover.

the outlook

Abano has a hold-and-maintain strategy in place for the Residential and Community Rehabilitation businesses, due to their reliance on Government funding.

The focus for the 2008 financial year is to organically grow this sector ensuring that the 18 additional beds are occupied, while monitoring costs and improving the margin. Revenue is expected to improve due to this increase in the number of available beds as well as the benefit of a rise in ACC fees for residential services in late 2006 and early 2007.


highlights and significant events

  • Appointment of a business development manager to focus on private paying customers and the wholesale market.
  • Renewing and securing a two-year exclusive contract for the Orthotic service provision to the Waikato DHB.
  • Renewing and securing a three-year contract with the three Auckland DHBs.


Recruitment and retention of staff continues to be an issue across the industry. Due to the lack of formal training available for orthotists and technicians in New Zealand, many qualified personnel are recruited from offshore. The Orthotic Centre is an accredited employer with the Immigration Service under the Talent Visa policy, which helps expedite the time taken to employ a person from overseas.

Continued professional education of staff continues to be a priority for Orthotic Centre, however, the New Zealand professional body is unable to provide satisfactory continuing education requirements. Therefore, Orthotic Centre will be registering clinical staff with the American Association, providing them with access to the latest information and trends, as well as the internationally recognised Training and Development Programme.

With the lack of professional development and promotion from within New Zealand, the provision of Orthotic services and product continues to fall to other allied health professionals, such as podiatrists or physiotherapists. The Orthotic Centre looks to overcome this by linking with internationally recognised bodies to provide better clinical and technical education and support for staff.


Over the next financial year, Abano will be investing in the Orthotics business, replacing the outdated IT system and improving the clinical and technical resource.

The Orthotic Centre has some publicly funded revenue, and the DHBs will remain an important client. Negotiations are currently under way with one DHB, with an increase in funding expected to address increasing wait lists and service delivery times.

There is a growing opportunity in the private market which is expected to increase significantly over the next few years and the Orthotic Centre will be increasing its focus in this area.

To aid in this, a new position of business development manager has been introduced, to work closely to secure, develop and retain relationships with key customers. The focus will be on private paying customers, who will diversify the revenue stream.

Supply chains are also currently being reviewed, with opportunities existing to renegotiate or source product from different overseas locations.

This business remains focused on increasing private revenue and on reducing costs, providing a more profitable service.