Lerwin Nursing Home sold to private operator
The Murray Bridge council has entered a deal to sell the aged care facility, which it has operated on the community’s behalf for decades.
This story is now free to read. Help Murray Bridge News tell more stories like this by subscribing today.
The Murray Bridge council will sell its Lerwin Nursing Home to a Western Australian company, it has announced.
Roshana Care Group, which operates almost 20 aged care facilities around Australia, will take control of the facility in January, following a settlement period.
The council will receive just over $11 million in the sale.
The nursing home will remain open, its name will stay the same, and all residents and staff will keep their places and jobs.
All were informed on Tuesday morning.
Murray Bridge News understands that the 50 people present at a meeting of residents and loved ones were “stunned” by the announcement.
More meetings will be held at the facility in the coming days.
The council had been hinting in recent months that the cost of running Lerwin had gone up by more than 50 per cent, was expected to keep rising, and that upgrades worth almost $7 million would be needed in the near future.
Mayor Wayne Thorley said on Tuesday that a recent audit had shown ratepayers were making a $1.6 million loss on the facility every year, and that losses of $18.5 million were projected over the next decade.
“The reality is that operating a standalone residential aged care facility is no longer sustainable for us,” he said.
Within five years, he said, the council would have faced a hard decision about whether to keep the facility going.
Instead, council CEO Heather Barclay said, the result was a good one: 80 aged care beds would remain in the community, and staff would keep their jobs and entitlements.
Roshana Care Group CEO Rosh Jalagge said his company would be honoured to continue Lerwin’s legacy.
His priorities would be supporting staff, maintaining continuity of care for residents, and strengthening the connection between Lerwin and the community, he said.
Mr Thorley said he was confident that Roshana would be able to keep places at Lerwin affordable for residents while maintaining high-quality care and a supportive staff culture.
Why was the public not consulted about the sale?
The last time the council considered selling Lerwin, in 2014, there was a significant public outcry.
Community members had raised the funds needed to build Murray Bridge’s first acute aged care facility in the 1980s, and had later donated it to the council to hold in trust.
So why was the public not consulted about the sale?
Mr Thorley said the council’s focus had been minimising anxiety for Lerwin’s residents and staff.
The council had not wanted to jeopardise its negotiations with Roshana, either, Ms Barclay said: “The risks outweighed the benefits.”
Mr Thorley argued that the current council was more open than those that had come before it, pointing to its willingness to cop criticism for controversial proposals such as a rating policy review and an east side sewer system.
How did the deal come about?
Roshana Care Group first made a “direct and confidential” approach about buying the Lerwin Nursing Home in May.
Councillors made the decision to sell the facility at a meeting on September 30, behind closed doors.
No other buyers were considered.
Ms Barclay said the council had done appropriate due diligence on the deal, including seeking advice from independent advisors with expertise in valuing aged care facilities.
Roshana Care Group had made a “very strong offer”, she said, and one which was in line with market rates.
The best way for the council to honour Lerwin’s founders would be ensuring the facility would continue to serve residents well into the future, Mr Thorley said.
People who had donated to the original Lerwin appeal, or bequeathed funds to the facility in their wills, could rest assured that their hard-earned money had been used for good.
The council had stepped in when community members had found it tough to keep running the nursing home; Roshana would now do the same for the council.
After all, only two councils in South Australia still ran their own nursing homes, he said: “Our best work is done in rates, roads and rubbish.”
How will the money be spent?
The council did not have any particular plans for the money it would raise through the sale, Mr Thorley said.
Instead, in the coming months, it would consult the community about how to use any funds that were left over.
The mayor suggested options like:
- A major project, like a new piece of community infrastructure
- Reducing the council’s debt
- Other aged care services
What about reducing council rates?
“That will be a topic for discussion,” he said.
- More information: www.murraybridge.sa.gov.au.
- Read more: Murray Bridge council rate rise locked in as aged care costs escalate
Correction: This story has been updated to more accurately reflect the number of facilities Roshana Care Group operates and the year in which the council took over Lerwin.
