A small town tests a different path in aged care

Upper Hunter Shire Council has backed a plan to keep Merriwa’s only aged care facility open by changing how it operates – shifting Gummun Place Hostel from residential aged care to a licensed assisted boarding house.

Under the model, Council will retain ownership of the site but lease it to an experienced operator to run day-to-day services. Residents will contract directly with the operator for accommodation and meals and can fund personal support through a Support at Home package. The transition is expected to take up to six months.

“The current residential aged care model is not financially sustainable,” said Deputy Mayor Pat Ryan, who chairs the Gummun Place Hostel Advisory Committee.

“This model reduces risk, lowers costs and supports residents to remain in Merriwa with access to quality care. Our focus now is on identifying the right partner to manage the facility and deliver services under this approach.”

Financial modelling by Pride Aged Living suggests the service could break even with as few as 11 residents, with potential improvement as the model is refined.

Assisted boarding houses carry fewer compliance requirements than residential aged care, reducing operating costs – a critical factor after Gummun Place recorded a $588,000 loss in 2023-24.

The decision follows more than 12 months of contingency planning. In November last year, Council wrote to then Aged Care Minister Mark Butler seeking “immediate and ongoing assistance” to keep the facility open and approached 160 potential operators – none were willing to take over under the traditional model.

The regional context is stark: other homes have closed in Singleton and Wallsend, and local hospitals are grappling with discharge delays as aged care capacity tightens.

If successful, Merriwa could offer a template for other small communities seeking to sustain local accommodation and support without the costs of a full residential aged care home.