The financial pressures facing aged care providers have once again been thrust into the spotlight after the sudden closure of two aged care homes on the Central Coast of New South Wales.
The Henry Kendal aged care facility at Wyoming and a dementia unit at The Orchards in Lisarow will close their doors at the end of the month, forcing the relocation of over 80 elderly residents.
According to an article by the ABC, operators of each facility have cited financial reasons as the main cause for the closure, along with the impact of the current Royal Commission into Aged Care Quality and Safety.
Operators of The Orchards, the Astoria Group, allegedly told a family affected by the closure that they do not have the resources to provide a high-standard environment for people living with dementia, according to the new quality standards and advice received.
The Henry Kendall aged care facility had been under sanctions since late April after the department identified an immediate and severe risk to the health, safety and well being of residents.
Allity, who operate the Henry Kendall facility spent over $2 million on improvements to the home before finally deciding to close the facility because it could no longer be modified “extensively enough to meet the accommodation needs and expectations of its residents.”
Residents and their families of both facilities are currently in a state of shock after being given five weeks’ notice for the impending closures and forced to look for alternative accommodation and care.
Central Coast Federal Member for Dobell and Shadow Assistant Minister for Carers Emma McBride, told the ABC that the sector was being starved of resources.
“We have an ageing population on the Central Coast, and we also have a shortage of particularly dementia-specific care,” Ms. McBride said.
“This is a crisis in our community and I don’t think the government properly recognises it.
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Very concerning. Of more concern though is that these 2 sites seem to also be victims of owners treating them like they were retail stores not making enough profit. (Visit their websites to see their ownership structures). This is one of the biggest issues in the industry. Yes we are all under significant financial pressure, but we must ask would this have happened if they weren’t under this ownership structure? Open to debate for sure, but the elephant in the room wont be hidden forever…