Sunday, 21 April 2024
    16
    Jul
    Aged Care

    Shockwaves through industry

    One of Perth’s most luxurious (and expensive) aged care groups has gone into voluntary administration sending a shock wave through the industry, the Sydney  Morning Herald reports.

    The group has two homes, one in Subiaco and the other in Como. The price of beds across the two homes ranges from $795,000 to $1,250,000 with the operator holding around $100 million in what used to be called “bonds” and are now known as “accommodation deposits”.

    Berrington Care Group says that it is profitable. It claims that its present predicament is the result of an issue with its major creditor.

    Being in the black is a better position than 44 per cent of residential care providers found themselves in laste year according to a recent government report. The figure spiked from 32 per cent the previous year.

    So what will happen with Berrington? The administrator (KPMG) will seek to preserve the company but if that isn’t possible a wind up could well be on the cards.

    In the meantime the aged care facility will continue to operate and the chief executive has stressed that there will be no reduction in care, services or staffing levels throughout this process.

    The possible need to relocate residents is a real concern for families along with fears around the refund of accommodation deposits.s.

    Residents’ refundable accommodation deposit balances are guaranteed by the commonwealth through the Accommodation Payment Guarantee Scheme.

    In the event that Berrington Care Group goes into liquidation and is unable to refund RAD’s, the guarantee scheme will meet the refundable accommodation payments.

    FULL STORY

    When half the nation’s aged care homes are losing money, more collapses will come (Sydney Morning Herald)

    PHOTO

    sabinevanerp / Pixabay / CC0