It feels like everybody is walking away from home and residential aged care services. This week Lions Club and the Rotary Club of Pascoe Vale (VIC) handed over the keys to their 1985 Edith Bendall Lodge (60 aged care beds and 14 independent living units) to Not For Profit Mayflower Group, and Bendigo Council decided to end decades of home support and walk away from 1,800 clients on CHSP, effective next June.
At the same time, Fresh Hope here in NSW handed the keys for The Glen (pictured), a modern aged care home in Batemans Bay, over to Canberra’s Not For Profit Goodwin.
The message is that aged care is a money pit, and at some stage responsible boards have to sacrifice this service to ensure the viability of their larger operation.
Catholic Healthcare (NSW) posted a $55.9 million deficit for the 2021-22 financial year, up from $42.9 million loss last year. How do you do this year after year?
In SATURDAY this week, we talk to Jason Binder, CEO of Respect Aged Care, based in the small town of Ulverstone. He positions Respect as a rebuilder of aged care businesses utilising hard-nosed practices, including seeking keys to age care homes for close to no exchange of cash. He has had no shortage of acquisitions in recent years. See below:
2006 – Tyler Village, Tasmania
2014 – Alcheringa, Victoria
2014 – Coates Hostel, Victoria
2016 – St Ann's, Tasmania
2016 – Wellington Views, Tasmania
2017 – Cohuna Village, Victoria
2019 – St John's Village, Victoria
2019 – Mt St Vincent, Tasmania
2019 – Avonlea, Victoria
2020 – Woodhaven, New South Wales
2021 – Cooinda, New South Wales
2021 – Tongala Memorial, Victoria
2022 – Mitchell House, Victoria
2022 – Lyrebird Village, Victoria
2022 – Fred French, Tasmania
2022 – Peace Haven, Tasmania
2022 – Freemasons Home, Tasmania
Jason’s message is that he and his team have the discipline and processes to make residential aged care work. If we accept this, it means that consolidation should proceed at speed with operators like Respect bringing their skill to the table.
Plan B and co-contribution needs to be part of this mix.
Otherwise, the sector is going to slowly, and miserably, implode.
