Southern Cross Care NSW & ACT’s announcement last week that it is going to close two regional aged care homes due to a “severe workforce shortage” was major news in an election year.
CEO Helen Emmerson said for the home, Currawarna, at Bombala in the Snowy-Monaro region to continue to operate sustainably, the operator had to have seven full-time staff members, including two registered nurses, but they have been unable to recruit full-time staff. Residents currently occupy 20 of the 33 rooms.
Ansell Strategic Founder and Managing Director Cam Ansell in his major report, The Third Wave of Consolidation, reported in The Weekly SOURCE last September, predicted the closure of aged care homes and further consolidation in the sector, which has been evident with Not For Profit Bolton Clarke buying Allity and NFP Calvary Health Care buying ASX-listed Japara.
“We are now starting to see homes close all over the country, with this problem particularly acute in regional settings,” said Ansell Strategic Director Amber Cartwright (photo to left).
“The recent closure of homes by Not For Profits and the exit of leading for profit operators is being driven by a myriad of challenges: funding, regulation and workforce.”
Ms Cartwright said homes would have to close due to the inability to provide quality and safe care because of the serious workforce challenge.
The Commonwealth Department of Health said seven aged care homes are in the process of closing – six in NSW and one in Queensland.
“Since 1 July 2020, almost twice as many residential care services have opened (57) than closed (30). There is no meaningful trend observation from this statistic. Over the last five years, six times as many aged care facilities have opened (288) than closed (48),” said a Department of Health spokesperson.
Ansell Strategic added that clients have paused residential aged care developments, while pivoting towards and exploring assisted living, expanded retirement living service options and home care.
“We’ve also seen other providers, such as Southern Cross Care Queensland, increase their investment in regional areas as part of their mission to keep communities and families connected,” Mr Cartwright.