RADs and confidence, page-15

That is exactly where differentiated service comes in doesn't it. And JHC is already starting to take this step by focussing more on the 'consumer'
If people are happy with minimal care then they can go live in a not-for-profit facility.
You could take another step back here and look at travelling on a plane for instance. There will always be people that are willing to pay for first/business class, while others say premium economy is better as they don't like the slanted set up in business class. Or they really don't care where they sit so long as they are on the plane, a stool could do the job (not advisable, do not try this on the plane).

As nightmarez3k pointed out, it's differentiated service, differentiated location that will drive profitability. The government obviously doesn't need aged care providers to party like its 1999 everyday, but the MPIR will be such that the industry remains sustainable. Chasing profits comes from providing differentiated services.