Andrews Government Inaction on Retirement Village Reforms

Andrews Government Inaction on Retirement Village Reforms - The Victorian Daniel Andrews government is dragging the chain with retirement village reforms.

Despite a 2016 inquiry htp://www.retvill.net/vic-government, recommendations in early 2017 then a government response to the recommendations, no major action has been taken to reform retirement villages in Victoria.

The inquiry, recommendations and response have been described as - left disappointed, no commitment, lost opportunity, evidence ignored, concerns dismissed, a damp squib, fillip to developers, brush-off to residents.

"Residents and their families will ultimately pay the price for the Victorian Government’s inaction on retirement housing reform''

Comments attributable to:

Gerard Brody, CEO Consumer Action Law Centre

• If you’re an older Victorian and want to resolve a problem with your retirement living, it should be cheap, quick and accessible. The evidence has shown that we need an ombudsman scheme for this sector.


• Recent piecemeal inquiries by the Victorian Government into the sector have failed to reduce the complexity of contracts or improve outcomes for residents. We had hoped for a strong response from the Government today that showed it cared for residents and their families. Unfortunately, we were left disappointed.

Lawrie Robertson, Vice-President Residents of Retirement Village Victoria

• There is no commitment in the Victorian Government’s response to improving the rights and protections for residents.


• Our members had hoped for quick implementation of a simple, free, binding dispute resolution service and they have been left bitterly disappointed.

Ronda Held, CEO COTA Victoria

• This is a lost opportunity for leadership in responding to the concerns of thousands of older Victorians and their families.


• The Victorian Government had overwhelming evidence of the problems in this sector, and that evidence has been ignored.

Fiona York, Co-Manager, Housing for the Aged Action Group

• None of the main concerns of residents have been adequately dealt with.


• Residents’ concerns about unfair and confusing fees, management practices and dispute resolution have been either dismissed or deferred.

Levitt Robinson solicitors

• The report of the Victorian Enquiry into the Retirement Housing Sector has proven to be a damp squib and disappointed many genuinely aggrieved Victorian residents of retirement villages.


• The enthusiasm with which it was greeted by the Property Council of Australia’s Victorian Division, when it was released on 7 March 2017, is a strong indication that it was a fillip to developers and brush-off to resident retirees.

Andrews Government Inaction on Retirement Village Reforms



 

Minister Delivers Both Praise and Concern

Minister Delivers Both Praise and Concern

The Weekly Source reports:-

"The Minister for Innovation and Better Regulation, Matt Kean, spoke to the retirement village sector at our LEADERS SUMMIT last Friday for the first time since he received Kathryn Greiner’s Inquiry report in December.

He identified that the Four Corners/Fairfax program, which led to his establishing the Greiner Inquiry, revealed “the stress, anger and misery” that is apparent in the retirement village sector, plus a “power imbalance” when it comes to contracts."

The full story is available here - NSW Minister Matt Kean delivers both praise and concern

Minister Delivers Both Praise and Concern

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Kathryn Greiner Warns Retirement Village Operators

Kathryn Greiner Warns Retirement Village Operators.

The Weekly Source reports -

"Kathryn Greiner’s warning for village operators: transparency should be top priority.

Alison Cheung of Commercial Real Estate, part of Domain, reported Ms Greiner saying: “It’s about providing accommodation at a price that people can afford, whether it’s the high end, the middle or the low. Call it for what it is, deal with it transparently,” she said.

As we reported last Friday, Ms Greiner said: “You run a reputational risk because retirement living is seen as a property play dressed up as care. It’s a property play, nothing wrong with that. But don’t pretend it’s a care factor issue.”

Ms Greiner, who also chairs the NSW Ministerial Advisory Council on Ageing, also warned the current village model was ripe for disruption, labelling over-55’s housing “a really old concept”.

“You have to think about this to see how you adjust and modify your work practices and improve the brand so it is a true option in the community.”

Food for thought from the head of the NSW Government inquiry into the village sector. Her report was given to the Minister, Matt Kean, in December and we await his proposed actions."

Full story here - Kathryn Greiner’s warning for village operators

Kathryn Greiner Warns Retirement Village Operators.



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Retiree Warning

Retiree Warning - Seniors locked in battle with Geelong lifestyle village.

Channel 9 Network A Current Affair reports:-

Full story available here:-   Seniors locked in battle with Geelong lifestyle village

"There are new calls for an overhaul of Australia's retirement and lifestyle villages, after a contract technicality caught out seniors at a gated community in Geelong.

Charlie Sciberras has had a holiday unit at Pelican Shores for more than 40 years, but the 62-year-old recently decided to sell the property to help fund his retirement.

The company claimed a clause in the contract meant they had control over the unit, and Mr Sciberras couldn't sell it on his terms, even though it had been in the family for decades.

Town planner Bill Kusznirczuk says property contracts are far too difficult and confusing, particularly for retirement and lifestyle villages.

He wants the Government to review the entire industry.

"I think it'd be prudent for the Federal government to initiate a review of retirement villages and lifestyle villages and how they can better improve the offer that's being given at the moment," he said."

Read the full story here:-   Seniors locked in battle with Geelong lifestyle village

Retiree Warning

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Statutory Duty of Candour

"The Victorian Minister for Health has committed to consult on the introduction of the statutory duty of candour and has asked that this consultation be led by an Expert Working Group appointed to provide advice on legislative reforms arising from Targeting Zero.

• A consultation paper has been released seeking the stakeholder views on aspects of a statutory duty of candour to be introduced in Victoria.


• A statutory duty of candour is a recommendation of a review led by Dr Stephen Duckett into quality and safety across the Victorian health system.


• A statutory duty of candour is a legal obligation to ensure that consumers of healthcare and their families are apologised to, and communicated with, openly and honestly when things have gone wrong in their care.

A statutory duty of candour is a legal obligation to ensure that consumers of healthcare and their families are apologised to, and communicated with, openly and honestly when things have gone wrong in their care."

Full story here :- https://www2.health.vic.gov.au/hospitals-and-health-services/quality-safety-service/better-safer-care/statutory-duty-of-candour




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Legislate or Educate

Legislate or Educate - Will Retirement Village legislators stop the industry problems with tighter legislative controls and greater consumer protections or will they simply continue on the current path of so called educate retirees in the hope retirees can identify the problem for themselves.

This policy given the current public outcry seems to have failed many Australian retirees.

In the past the retirement industry has managed to persuade governments that greater consumer protections would come at the cost of industry growth and innovation. Governments have held the view that it was better to educate than to legislate.

Report after report identified the issues, the issues in 2007 were the very same issues today. Some argue that it is the very basis of retirement villages, the Deferred Management Fee model which has sent the industry on this path, a system designed for charity organisation decades ago, and that to just buy or rent is the best simplest reform to make.

The property purchase market and the property rental market are mature markets, well legislated, and very well understood by retirees. It is now 2017, let us hope we will not be back here in 2027 discussing these same issues.



 




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Influenza Deaths Board Accountability

Ten flu deaths at nursing home amid serious management failure

Influenza Deaths Board Accountability - The Board of Governors of St. Johns Village Wangaratta is showing no signs of accepting any responsibility for this influenza deaths tragedy.

 

•  In early 2016 the Director of Care position was made redundant.


• The Board introduced a flatter management structure


• The Australian Nursing and Midwifery Federation Victorian branch alleged that St John’s had breached its enterprise bargaining agreement by not employing a director of care – and consequently jeopardised its community reputation.


• Following a letter from the Board's lawyers claiming that they believed the statement was defamatory the ANMFV apologised for any inference that the Board may have failed in its governance obligations.


• Mr. Morris was appointed as acting Care Services Manager.


• On July 10 2017 Dr Brett Sutton, Deputy Chief Health Officer (Communicable Disease), Victoria issued a warning to all Victorian Health professionals and consumers that seasonal influenza rates are up, with the overall number of confirmed influenza cases in Victoria up 81 per cent compared to the same time in the calendar year 2016.


• The Board of Governors ultimately responsible for the operation of the facility includes a medical practitioner and also a member that claims a specialty in infection prevention and control.


• August 7 first signs of illness amongst residents.


• August 16 first death.


• Aged Care Minister Ken Wyatt instructs the quality agency to conduct a review audit of the St John’s Wangaratta aged care facility to assess their performance against the 44 accreditation standards, which includes infection control systems and processes.


• Aged Care Minister Ken Wyatt announced that the Wangaratta St. John’s Nursing Home failed multiple outcomes after an audit by the Australian Aged Care Quality Agency.


• One such area listed as a fail was 1.2 Regulatory Compliance.
  “The organisation’s management does not have an effective system to identify and promote compliance with all relevant legislation, regulatory requirements, professional standards and guidelines.”

Although the Board of Governors cannot be held responsible for influenza entering the nursing home they do carry a responsibility and an accountability for what happened once it did.  Is it a strength or a weakness of an organisation that simply sheets home the blame to individuals who were placed in positions but may subsequently be shown to be without the necessary experience to fulfil the role.

Whatever any shortcomings of the now resigned Mr. Morris may be, he was appointed to the position in an acting capacity by senior management.  Whatever any shortcomings of the now resigned CEO Mr. Phelps may be, he was appointed to the position by the Board.

The responsibility and accountability for this tragedy does not rest just with the sacrificial lambs Mr. Morris and Mr. Phelps alone.  If the buck doesn't stop with the Board then who does it stop with?


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St Johns Nursing Home Fails AACQA Audit

St Johns Nursing Home Fails AACQA Audit - Aged Care Minister Ken Wyatt announced that the Wangaratta  St. John's Nursing Home failed multiple outcomes after an audit by the Australian Aged Care Quality Agency.

The report was ordered  by the Aged Care Minister Ken Wyatt after 10 residents died during an outbreak of influenza at the facility.

The Quality Agency audit found that the Nursing Home failed to meet 12 of the 44 expected outcomes from the Accreditation Standards.

The full report can be downloaded here :- http://www.aacqa.gov.au/publications/reports/stjohnsretirementvillagenursinghome4481-5.docx/@@download/file/stjohnsretirementvillagenursinghome4481-5.docx

Below is a summary of the audit findings for the Nursing Home section of the complex.

The information obtained through the audit indicates the Nursing Home did not meet expected outcomes.

Standard 1 – Management systems, staffing and organisational development

1.1 Continuous improvement

“The organisation does not have an effective system that demonstrates a proactive approach to continuous improvement across the Accreditation Standards.”

1.2 Regulatory compliance

“Management did not ensure staff reported allegations of elder abuse in a timely manner. Management did not ensure the respiratory outbreak case list was complete and reflected all deaths and hospitalisations. Management did not ensure all deaths and hospitalisations related to the influenza and respiratory outbreak of August 2017 and September 2017 were consistently notified to the Department of Health and Human Services in a timely manner within 24 hours. ”

1.3 Education and staff development

“Management and staff cannot demonstrate they had the appropriate knowledge and skills to identify, contain and manage the influenza and respiratory outbreak of August 2017 and September 2017. These skill and knowledge deficits impacted negatively on care recipients.”

1.4 Comments and complaints

“During the review audit, stakeholders raised concerns about staffing levels, skin care, pain management, continence and clinical care during the influenza and respiratory outbreak in August 2017 and September 2017. In addition, they raised concerns about infection control, cleaning and the level of communication during that time.”

1.6 Human resource management

“The organisation did not maintain a sufficient number of appropriately skilled and qualified staff during the influenza and respiratory outbreak of August 2017 and September 2017. There was not always a registered nurse on duty and the on call nurse did not always come in when requested after hours. ”

1.8 Information systems

“The organisation cannot demonstrate their information systems during the recent respiratory outbreak of August 2017 and September 2017 were effective. The policies, procedures and flowchart do not reflect current Australian Government and Victorian Government infection control guidelines.”

Standard 2 – Health and personal care

2.1 Continuous improvement

“Clinical monitoring and reporting mechanisms are ineffective and management cannot show key performance data that exceeded specified risk thresholds has been actioned, for example, falls, hydration status and number of medications prescribed.”

2.2 Regulatory compliance

“Management did not ensure qualified staff were always available and responsible for assessing and monitoring care recipients’ clinical care needs during the influenza and respiratory outbreak of August 2017 and September 2017. Staff did not always work according to legislative requirements or within their scope of practice in relation to verification of death, management of syringe drivers and controlled medication.”

2.4 Clinical care

“During the influenza and respiratory outbreak in August 2017 and September 2017 a number of care recipients did not receive appropriate clinical care. Three of ten care recipients who died with influenza or respiratory illness were not referred to a medical officer at the onset of their illness.”

2.8 Pain management

“Care recipients' pain was not effectively managed during the respiratory and influenza outbreak of August 2017 and September 2017. Staff said care recipients who were unwell during the outbreak died in pain because they could not provide timely repositioning and pain management resources were not always available. Pain relief medication was not always available for care recipients and pain charting was not always completed in order to evaluate the effectiveness of pain relief measures.”

2.11 Skin care

“During the influenza and respiratory outbreak of August 2017 and September 2017 a number of care recipients did not receive appropriate skin care. Seven of ten care recipients who died with respiratory illness had outdated information in assessments and care plans impacting on the delivery of care recipients’ skin care needs. Four of ten care recipients developed pressure areas during the outbreak with no action taken to initiate wound management plans or ensure treatments were ongoing. ”

Standard 3 – Care recipient lifestyle

3.2 Regulatory compliance

“Staff who received allegations of elder abuse did not always report the allegations in accordance with regulatory compliance obligations. Management said until September 2017 they were not aware they had to maintain a consolidated record of incidents where discretion not to report is used. The new consolidated record does not capture all incidents of care recipient to care recipient aggression.”

Standard 4 – Physical environment and safe systems

4.1 Continuous improvement

“Monitoring and reporting mechanisms to gather infection data, analyse data for trends and improvement opportunities are not effective. Infection data provided to the home’s benchmarking service has been inaccurate, resulting in performance monitoring and reporting that is incorrect. Systemic failures were identified in relation to the monitoring and actioning of the processes within the quality system in relation to Standard 4 Physical environment and safe systems.”

4.2 Regulatory compliance

“Management did not have systems to ensure management and staff followed all relevant guidelines in identifying, actioning and monitoring the influenza and respiratory outbreak in a timely manner from the onset of symptoms. Management was not aware of their responsibilities in relation to the reporting of the hospitalisation or deaths of care recipients with influenza or respiratory illness within 24 hours and did not comply with these requirements. ”

4.3 Education and staff development

“The home did not have an effective system to ensure management and staff had the required knowledge and skills to identify and contain infection during the influenza and respiratory outbreak of August 2017 and September 2017. Processes to ensure staff had appropriate knowledge and skills to perform their roles effectively during the outbreak did not occur until infection control education commenced on 22 August 2017.”

4.7 Infection control

“St John's Retirement Village Nursing Home did not implement a coordinated and timely infection control program that was effective in identifying and containing infection during the influenza and respiratory outbreak of August 2017 and September 2017. Management did not implement timely and effective infection control measures and did not provide co-ordination, direction and management during the outbreak to control the spread of infection.”

4.8 Catering, cleaning and laundry

“Infection control cleaning procedures were not consistently implemented during the influenza and respiratory outbreak of August 2017 and September 2017. Five cleaning staff and the environmental services manager were on unplanned leave at times during the outbreak and the leisure and lifestyle coordinator with no recent infection control training supervised environmental services staff. Cleaning shifts were not consistently replaced and when filled, the shifts were not always replaced with staff who had been trained in outbreak infection control.”


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Aged Care Influenza Reviews

Aged Care Influenza Reviews - The Hon Ken Wyatt AM, MP, Minister for Aged Care released the results of the AACQA  Influenza reviews for the St. John's aged care facility in Wangaratta Victoria and the Uniting AgeWell Strathdevon facility in Latrobe Tasmania.

The St. John's Wangaratta facility failed 13 of 44 outcomes with 12 deaths and the Uniting AgeWell Latrobe facility failed 5 of 44 outcomes with 6 deaths.

"The Australian Government today released detailed reviews of aged care homes in Victoria and Tasmania that suffered deadly influenza outbreaks this winter, which revealed poor facility management and low staff vaccination rates.
Federal Aged Care Minister Ken Wyatt ordered the review by the Australian Aged Care Quality Agency of the St Johns facilities in Wangaratta and the Strathdevon facility in Latrobe during the influenza outbreak in August and September.
“These review audits reveal management errors, especially in infection control at the two sites,” Minister Wyatt said.
“The flu season affected aged care residents and staff and the homes’ infection control and contingency plans were overwhelmed but it was unacceptable.
“Staff vaccination rates in both homes were low, with only around one-third vaccinated ahead of the outbreaks, and dozens of staff were subsequently struck down with the flu.”
In response, Health Minister Greg Hunt has moved to make it mandatory for aged care facilities to implement flu vaccination programs for staff, with Chief Medical Officer Dr Brendan Murphy currently examining all options to increase vaccination rates.
These reviews have found that at both sites, the homes’ management did not provide enough additional support and the professional guidance that was required to cope with the outbreak.
Minister Wyatt said the Quality Agency had now greatly increased its focus on the issue of infection control at all aged care facilities.
“The Agency is reviewing infection control practices, including a mandatory survey of all facilities’ outbreak management and staff vaccination rates, which is due for completion next week,” said Minister Wyatt.
“Results will be collated, then the Agency will focus on and engage with all homes which have registered low vaccination rates or difficulties managing the 2017 flu season.”
The Quality Agency is also running staff seminars in every aged care jurisdiction at present, to strengthen quality monitoring around infection control and increase staff and resident vaccinations.
Targeted aged care communication and education materials will be developed for the 2018 influenza season to further promote staff influenza vaccination.
All aged care providers have also been asked to review their infection control practices, to ensure that they are well equipped to manage and respond to an outbreak.
“Providing safe, quality aged care for our senior Australians is non-negotiable,” Minister Wyatt said.
“I am closely monitoring developments, and ensuring all Government-funded aged care facilities are prepared for infectious outbreaks, especially influenza, is a top priority.”
The reports are available at:
St John’s Retirement Village Hostel
http://www.aacqa.gov.au/publications/reports#b_start=0&c8=3293
St John’s Retirement Village Nursing Home
http://www.aacqa.gov.au/publications/reports#b_start=0&c8=4481
Uniting AgeWell Strathdevon
http://www.aacqa.gov.au/publications/reports#b_start=0&c5=strathdevon&c8=8405

Aged Care Influenza Reviews

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St Johns Hostel Fails AACQA Audit

St Johns Hostel Fails AACQA Audit - Wangaratta Aged Care facility St. John's Village has failed multiple outcomes following an audit by the Australian Aged Care Quality Agency.

The report was ordered  by the Aged Care Minister Ken Wyatt after 10 residents died from influenza.

Following a review audit the Quality Agency decided that the Hostel section of the complex failed to meet 12 of the 44 expected outcomes of the Accreditation Standards.

The full report is available for download here :- http://www.aacqa.gov.au/publications/reports/stjohnsretirementvillagehostel3293-5.docx/@@download/file/stjohnsretirementvillagehostel3293-5.docx

The following is a summary of the audit findings for the Hostel section of the complex.

The information obtained through the audit indicates the Hostel does not meet the following expected outcomes:

Standard 1 – Management systems, staffing and organisational development

1.1 Continuous improvement

“The organisation does not have an effective system that demonstrates a proactive approach to continuous improvement across the Accreditation Standards. ”

1.2Regulatory compliance

“Management did not have systems to ensure management and staff followed all relevant guidelines in identifying, actioning and monitoring the influenza and respiratory outbreak in a timely manner from the onset of symptoms. ”

1.3 Education and staff development

“Management and staff cannot demonstrate they had the appropriate knowledge and skills to identify, contain and manage the influenza and respiratory outbreak of August 2017 and September 2017. These skill and knowledge deficits impacted negatively on care recipients.”

1.4 Comments and complaints

“During the review audit, stakeholders raised concerns about staffing levels and clinical care during the influenza and respiratory outbreak in August 2017 and September 2017. In addition, they raised concerns about infection control, cleaning and the level of communication during that time. ”

1.6 Human resource management

“The organisation did not maintain a sufficient number of appropriately skilled and qualified staff during the influenza and respiratory outbreak of August 2017 and September 2017. ”

1.8 Information systems

“The respiratory outbreak case list used to provide accurate information to the Department of Health and Human Services was incomplete and did not reflect all care recipients’ hospitalisations and deaths.”

Standard 2 – Health and personal care

2.1 Continuous improvement

“Clinical monitoring and reporting mechanisms are ineffective and management cannot show key performance data that exceeded specified risk thresholds has been actioned, for example, falls, hydration status and number of medications prescribed.”

2.4 Clinical care

“During the influenza and respiratory outbreak in August 2017 and September 2017 a number of care recipients did not receive appropriate clinical care. Not all care recipients who received treatment for respiratory illness were referred to a medical officer at the onset of their illness.”

Standard 3 – Care recipient lifestyle

3.2 Regulatory compliance

“Management said until September 2017 they were not aware they had to maintain a consolidated record of incidents where discretion not to report is used.”

Standard 4 – Physical environment and safe systems

4.1 Continuous improvement

“Systemic failures were identified in relation to the monitoring and actioning of the processes within the quality system in relation to Standard 4 Physical environment and safe systems. ”

4.2 Regulatory compliance

“Management were not aware of their responsibilities in relation to the reporting of the hospitalisation of care recipients with influenza or respiratory illness within 24 hours and did not comply with these requirements. ”

4.3 Education and staff development

“The home did not have an effective system to ensure management and staff had the required knowledge and skills to identify and contain infection during the influenza and respiratory outbreak of August 2017 and September 2017.”

4.7 Infection control

“Organisational policies and procedures to direct staff response during a respiratory outbreak are not in line with current Australian Government and Victorian Government infection control guidelines that define an outbreak as three or more people (care recipients or staff) showing symptoms within the same three day period. ”

4.8 Catering, cleaning and laundry

“Management cannot demonstrate that hospitality services are provided in a way that enhances care recipients’ quality of life and the staff working environment. Infection control cleaning procedures were not consistently implemented during the influenza and respiratory outbreak of August 2017 and September 2017.”

St Johns Hostel Fails AACQA Audit.




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ACQA Reports St. John's Aged Care Failures

ACQA Reports St. John's Aged Care Failures - Melbourne Age in an article by Michael Bachelard and Ebony Bowden reports -

Ten flu deaths at nursing home amid serious management failure

"A fatal flu outbreak at a Wangaratta nursing home, where 10 residents died of influenza and two others from respiratory illness, was worsened by serious management failures, a scathing government audit has found.

In response, the St John's Village nursing home accepted the resignation of its own former acting care services manager and referred him to his professional body for potential sanction.

A federal government audit of the St John's Village home, which was ordered after the catastrophic outbreak, has found it took days after infections began in August for management to report the outbreak."

Read the detailed article here:- http://www.theage.com.au/victoria/ten-flu-deaths-at-nursing-home-amid-serious-management-failure-20171113-gzk29h.html

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Morning Tea with Vic Pollies

Morning Tea with Vic Pollies

"WE'VE HAD THE INQUIRY, NOW WE NEED RETIREMENT HOUSING REFORM!

JOIN US FOR MORNING TEA AT PARLIAMENT HOUSE ON 30 NOVEMBER TO HEAR FROM YOUR MP AND THEIR PLANS FOR RETIREMENT HOUSING.

MAKE SURE YOU CALL YOUR MP AND INSIST THEY ATTEND THIS EVENT!"

CALL HAAG 03 9654 7389 FOR YOUR MP'S CONTACT DETAILS

Housing for the Aged Action Group, Consumer Action Law Centre, Residents
of Retirement Villages Victoria and Council on the Ageing are calling on all Victorian legislators to join them for morning tea outside the Victorian Parliament House on November 30 to discuss reform issues, or lack thereof, around retirement housing.

Consumer Action, COTA Victoria, RRVV and Housing for the Aged Action Group will also launch their joint Retirement Housing Election Platform as all Victorians, particularly retirees, look toward the 2018 Victorian election.



Morning Tea with Vic Pollies

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Retirement Village Contract Rescission

The New South Wales Retirement Village legislation Section 33, rescission of contract requires a fix.

Retirement Village Contract Rescission - Retirement village residents are attending a Greiner enquiry community forum at Wagga Wagga to discuss industry issues such as above.

The ability of a retirement village resident in New South Wales to rescind their contract on grounds of a matter relating to the disclosure statement is almost non-existent as they are only granted 3 months after taking occupancy to put in place such an action. No retirement village resident would have an understanding of every actual or potential wrongdoing arising from the disclosure statement within that time frame. Many actions within the disclosure statement take place well outside the first three months of occupancy. The Victorian system (Section 42) has a 'must take action within 6 months of becoming aware of a wrongdoing' legislative provision.

Operators are well protected in that any hurt done to a resident must be clearly shown to be a material hurt.

Retirement Village Contract Rescission - If the New South Wales Greiner enquiry into retirement villages is truly looking to improve potections for retirees Section 33 of the Act should be amended inline with the Victorian provision.

NSW Enquiry into Retirement Villages

NSW Government Fair Trading announced:-

NSW Enquiry into Retirement Villages - "As part of its four-point plan to improve retirement village living, the NSW Government has commissioned Kathryn Greiner AO to lead an inquiry into the NSW retirement village sector.

The inquiry will review the protections offered to residents, and ensure that Fair Trading has the necessary powers to make sure retirement village operators are complying with the law.

The investigation will look at concerns raised about the fairness and transparency of business practices of retirement villages in NSW, and includes:

• transparency and honesty of marketing activities


• clarity of fees and contractual rights and obligations for prospective residents and their families


• suitability and fairness of village maintenance and operational practices to maintain resident safety


• availability and cost-effectiveness of dispute resolution mechanisms


• fairness of arrangements to levy maintenance fees to maintain the village and address building defects.

The inquiry will also look at opportunities to improve Fair Trading’s administrative and operational practices that could help address unfair practices in the sector.

The inquiry seeks the views of current and former residents, their families and advisors, on the issues raised in the Terms of Reference (PDF size: 161kb).

Residents and members of the community are invited to attend a consultation forum to discuss their concerns at locations across the State. Forums will be held in Sydney, Hornsby, Ballina, Port Macquarie, Newcastle, Wollongong, and Wagga Wagga during October 2017.

Register for your free seat to a community forum here.

If you are unable to attend a public forum, you can still make a submission by using the online submission form or written submission to the address listed below. "

Real Retirement Village Reform

Real Retirement Village reform outlined by Paul Latimer - Swinburne University of Technology - Swinburne Law School

It's Time for Federal Regulation of Retirement Villages

"As Australia’s population ages, increasing numbers of seniors move to a growing number of retirement villages. Unlike time shares, which are ‘managed investment schemes’ and therefore regulated as ‘financial products’ under corporate law administered nationally by the Australian Securities and Investments Commission (ASIC), the Commonwealth withdrew from the regulation of retirement villages in the 1980s on the basis that at that time they were local, usually run by religious bodies and charities and were not of national concern. The regulation of retirement villages was taken over by the States and Territories under their non-uniform Retirement Villages Acts and the common law. Until then retirement villages, often indistinguishable from Commonwealth regulated timeshares, were regulated in the original State and Territory Uniform Companies Acts in 1961 as ‘interests’, and then in later Commonwealth legislation as ‘prescribed interests’ by the forebear of ASIC, the then National Companies and Securities Commission (NCSC) with the State and Territory Corporate Affairs Commissions as its ‘delegates’.

Today retirement villages, which are largely owned and managed by the corporate sector, raise many issues of national concern such as accountability, fees and the rights of residents. Some aspects of retirement villages such as directors’ duties, fundraising, prospectuses and unregistered schemes are regulated as corporations by ASIC under the Corporations Act 2001 (Cth), but retirement villages are not regulated as ‘financial products’ under corporate law.

This article challenges the effectiveness of State and Territory regulation of retirement villages and calls for federal regulation of retirement villages by bringing retirement villages into the definition of ‘financial product’ in the Corporations Act 2001 (Cth) and in the Australian Securities and Investments Commission Act 2001 (Cth). As financial products, retirement villages would then be regulated by Commonwealth legislation which deals with financial services and financial markets, as regulated by ASIC. These laws include consumer protection provisions such as the prohibition of misleading or deceptive conduct, unfair contract terms, unconscionable conduct, licensing and high standards for those in the retirement village industry. This would result in a return to Commonwealth leadership of the regulation of retirement villages to harmonise and to consolidate the current mix of State and Territory regulation with federal legislation including an enforceable Retirement Villages Code of Conduct."

Full paper here:   It's Time for Federal Regulation of Retirement Villages



 

Retiree Pleas Ignored

Retiree Pleas Ignored.

The Victorian Government has responded to the LSIC enquiry into Retirement Living.

The Consumer Action Law Center, Council of the Ageing, Housing for the Aged Action Group and the Residents of Retirement Villages Victoria released a combined statement.

"Response to Retirement Housing Inquiry fails to provide access to justice

After six months of waiting, the Victorian Government has responded to the Inquiry into the Retirement Housing Sector, conducted by the Victorian Legislative Council.

The Victorian Government’s response to the Parliamentary Inquiry has failed to deliver, according to retirement housing residents and advocates. Despite nearly 800 submissions to the Inquiry and recommendations that promised meaningful reform, the pleas of retirees and residents have fallen on deaf ears, with many of the proposed reforms pushed off into the long grass of more reviews.

While the Victorian Government has accepted the Inquiry’s recommendation to launch a review into the Retirement Villages Act 1986 (the Act), it has pointed to various other inquiries and reviews underway, stalling a much-needed comprehensive review of the legislation. A review of the Act has been delayed until an unspecified date.

Of serious concern is the failure to remedy the serious problems identified in providing access to justice for the thousands of older Victorians and their families who are unable to resolve disputes with their retirement housing provider.  The Government can fix this by creating an ombudsman for low cost, timely and binding resolution of disputes.

According the Victorian Government’s response, ‘significant further analysis and evidence are required before a position on this recommendation can be determined’. Given the number of submissions outlining problems with dispute resolution in this sector, along with casework experience of leading community legal centres such as Consumer Action and the significant costs involved in going to court, we are surprised that further evidence is needed by the Victorian Government before it will act.

In relation to improving management training standards, the Victorian Government has left it up to industry to sort out. The response has also failed to deliver any meaningful change to harsh exit fees which can lock people into contractual arrangements. This is wholly unacceptable.

Residents and their families will ultimately pay the price for the Victorian Government’s inaction on retirement housing reform.

Comments attributable to:

Gerard Brody, CEO Consumer Action Law Centre

• If you’re an older Victorian and want to resolve a problem with your retirement living, it should be cheap, quick and accessible. The evidence has shown that we need an ombudsman scheme for this sector.


• Recent piecemeal inquiries by the Victorian Government into the sector have failed to reduce the complexity of contracts or improve outcomes for residents. We had hoped for a strong response from the Government today that showed it cared for residents and their families. Unfortunately, we were left disappointed.

Lawrie Robertson, Vice-President Residents of Retirement Village Victoria

• There is no commitment in the Victorian Government’s response to improving the rights and protections for residents.


• Our members had hoped for quick implementation of a simple, free, binding dispute resolution service and they have been left bitterly disappointed.

Ronda Held, CEO COTA Victoria

• This is a lost opportunity for leadership in responding to the concerns of thousands of older Victorians and their families.


• The Victorian Government had overwhelming evidence of the problems in this sector, and that evidence has been ignored.

Fiona York, Co-Manager, Housing for the Aged Action Group

• None of the main concerns of residents have been adequately dealt with.


• Residents’ concerns about unfair and confusing fees, management practices and dispute resolution have been either dismissed or deferred."

Infection Control Procedures

Australian Ageing Agenda reports -

"The Minister for Aged Care has ordered an “urgent review” into the infectious disease management practices of all aged care facilities following an increase in flu-related deaths in residential aged care this winter.

Minister for Aged Care Ken Wyatt told AAA the Australian Aged Care Quality Agency would “examine the management of infectious diseases outbreak procedures, including vaccinations of staff and residents, across the aged care sector.”

Questions posed by AAA to Minister Wyatt regarding the scope and nature of the agency’s review were referred to the quality agency.

The details of how the examination will be conducted and what it will involve are currently being finalised, a spokesperson for the quality agency told AAA on Wednesday morning.

The review announcement came on Sunday when Minister for Health Greg Hunt and Minister for Aged Care Key Wyatt also announced that Australia’s chief medical officer Professor Brendan Murphy would look at ways to boost vaccination rates among residential aged care workers including making the flu vaccination compulsory.

Both investigations have been prompted by the deaths of now eight residents at St John’s Retirement Village in Wangaratta in Victoria and reports of fatalities from the flu at Strathdevon Aged Care in Tasmania.

“Older people are always vulnerable to the flu, but the many deaths this year are unacceptable,” Mr Wyatt said.

Minister Wyatt said he has also instructed the quality agency to conduct a review audit of the St John’s Wangaratta and the Strathdevon aged care facilities to assess their performance against the 44 accreditation standards, which includes infection control systems and processes.

“The quality agency has been advised that the Strathdevon home is being reopened, meaning this review audit will begin on Monday, 11 September,” Mr Wyatt said.

“The review audit of St John’s Wangaratta is also expected to start next week but this will depend on when the home is reopened,” he said.

The completed review audit reports will be provided to the secretary of the Department of Health and will be published on the quality agency’s website."

 



 

Act In Good Faith

" In the end the prospective resident signs the documents in good faith and hopes that the village owner/developer has acted in good faith also. "

Many residents in retirement villages around Australia in 2017 would relate to the statement made by Mr. Robert Boyne to the House of Representatives Standing Committee enquiry into Older People and the Law way back in 2007.

Mr. Boyne advised the committee, " In the end the prospective resident signs the documents in good faith and hopes that the village owner/developer has acted in good faith also. "

Given the recent revelations highlighted on the ABC 4 Corners program and in the Sydney Morning Herald and Age newspapers, village residents could be forgiven for feeling that this 'act in good faith' by the residents through the years 2007 to 2017 has not been matched by village owners/developers in a multitude of cases.

7 Deaths @ St. Johns Wangaratta

ABC News Reports:-

Seven elderly residents from a nursing home in Victoria's north-east have died during a flu outbreak, the state's health authorities say. The deaths occurred at St John's Retirement Village in Wangaratta, which is run by the Anglican Church.

The Department of Health and Human Services said the retirement village had 146 residents and 200 staff, with 123 people affected by flu during an outbreak over the past few weeks.

The seven residents who died were aged between 70 and 94, and had other conditions that made them particularly susceptible.

The department said it had worked with the facility to manage the outbreak and ensure strict infection control measures.

It said the outbreak was now subsiding.

Wangaratta Bishop John Parkes said the outbreak has been an "extraordinary and unusual event" unlike any they had ever experienced before.

"It has been a very difficult time," he said.

"Of course the tragedy is we've lost seven residents who are part of the St John's family and that is dreadful for them, for their families and for the staff and the organisation."

"But we mourn the loss of any resident and seven [dead] in one influenza epidemic is a tragedy for their families and for us."

Thirteen people are still sick at the home, which will be in lock-down for at least another week as long as no-one else develops flu.

Aged Care Minister Ken Wyatt said as soon as the outbreak is over, the facility will be audited.

"My thoughts are with the families of those affected," he said.

"The Australian Aged Care Quality Agency will conduct an urgent review audit of the Wangaratta retirement and nursing home facility."

Victoria's acting chief health officer Dr Brett Sutton said the flu is particularly dangerous for frail people in aged care facilities.

"The deaths have occurred mostly in the last week, they were all in elderly people in their 70s [and] into their 90s, all with pre-existing conditions so they were vulnerable to significant illness," he said.

"It's a reminder that flu is really deadly."

There have been twice as many outbreaks of the flu this year than there were in 2016, with 208 respiratory outbreaks in aged care homes this year compared with 104 for the same period last year.

The health department said there had been more than 11,300 confirmed cases in Victoria in 2017, with many more notifications still expected.

"We've had aged care facilities hit particularly hard this year with a record number of outbreaks in those settings and we've had elderly people in general affected more than most years," Dr Sutton said.

"They [the elderly] are vaccinated in aged care facilities largely, including this one, but the vaccine doesn't work as well in the very elderly so it's incumbent upon those who are visiting and the staff in those facilities to try and be immunised and to exclude themselves from work if they're unwell."

 

Retirement Village Legislative Reform Essential

Advocate for Retirement Village legislative reforms Mr. Les Scobie claims the following at times whimsical but none the less pointed outline of a prospective purchase in a retirement village shows the need for a major amendment to the laws governing retirement villages.

An initial enquiry process for entering a retirement village may go something like this:-

• Selling Agent - The unit price is $850,000.00, close to those in the freehold development next door where you would obtain ownership but here you just get a conditional right to occupy.


• Enquirer -  What, I don't actually get ownership for $850,000.00, all I get is a conditional right to occupy!


• The Deferred Management Fee payable to this operator is 35% or $297,500.00 of that in-going price of $850,000.00.


• What, I don't get all my money back when I leave the property even though I only have conditional occupancy!


• Why do they call it a 'deferred' fee. Because you don't pay it until you leave.  But I will give it to you on entry in the $850,000.00.  No you don't pay it until you leave. But I will give it to you on entry in the $850,000.00.  No you don't pay it until you leave.  Can we move on!


• That 35% or $297,500.00 amount helps pay for the $2.5m communal recreational facilities and helps the operator make a profit so they can continue to provide this type of accommodation which is well liked by both State and Federal Governments.


• What!  You want me to believe you have made no profit over development costs at the $850,000 per unit price point.


• You have over 100 units here so that $297,500.00 taken per unit totals $29.7m for a once only communal and recreation facility cost of $2.5M.


• Retirement village units turnover around every 8 years so you will get at least $29.7m now at the start of the village and then again around every 8 year period over the entire life of the village. Yes but we don't like to draw attention to that.


• You get 65% or $552,500.00 of that $850,000.00 in-going payment refunded but not until you depart the unit after say 5, 10, 15 years. 


• What!  But inflation will have decimated the present day value of my money by that time, I will struggle to have enough capital value to return to the property market or afford a nursing home placement.


• This has the capacity to put me into what people describe as the retirement village financial or poverty trap. Yes but we don't like to draw attention to that.


• The operator gets to use that 65% or $552,500.00 of that in-going payment interest free for their working capital needs or to repay their commercial borrowings or simply to invest for a profit until repayment on your exit.


• What!  But you have over 100 units here, that would generate an interest free cash pool of over $55.0m million dollars increasing over time as each unit increases in price.  Yes but we don't like to draw attention to that.


• Because the unit is owned by the operator, the operator keeps any capital gain.


• What!  I pay an in-going amount in the order of a purchase price but I do not share in any capital gain. Yes under this contract 100% of the capital gain goes to the operator.


• Although the unit is owned by the operator you must pay all the maintenance costs of the unit.


• What!  But you said I don't have ownership only conditional occupancy!


• Although the unit is owned by the operator you pay the full refurbishment cost of the unit on your departure, currently around $60,000.00.


• What!  $60,000.00 to refurbish the unit that I do not have ownership only conditional occupancy.  Yes that is the cost today but of course it will likely be more in 5, 10, 15 years time.


• Although all the units are owned by the operator you and your fellow residents pay all the maintenance costs associated with the common areas and the recreational facilities.


• What!  But you said I don't have ownership only conditional occupancy!


• To summarise, you and other residents pay an in-going amount near to or commensurate with an ownership cost but the operator retains ownership and you get only conditional occupancy. The operator keeps 35% of this in-going amount for their purposes and uses the other 65% interest free until refunded to you on exit.  The residents pay all maintenance costs on the units and on both the communal property and the recreation facilities. The residents pay the full refurbishment cost of the unit they occupied upon departure from the village. The operator as owner of the unit keeps the value of any capital gain on the unit. 


• Isn't this form of retirement accommodation just an outdated system originally designed for not for profit entities but is now dominated by private enterprise. It simply accelerates the transfer of the lifetime savings of older Australians into the hands of private enterprise under the guise of buying a lifestyle not real estate.  Perhaps but we don't like to draw attention to that.


• Property developers in capital cities and areas like the Gold Coast can build a large unit complex with communal recreational facilities then market them to owner occupiers or rental market investors, they make their profit and move on to their next development. Wouldn't this system better protect the capital value of older Australians?   Yes but we don't like to draw attention to that.


• Are you really sure this is all legal.


• Oh yes it is all clearly enshrined in State Government legislation.


• Isn't it the role of governments to protect it's citizens, not to continue an outdated residential accommodation scheme that actually generates financial harm to these citizens.  Perhaps but we don't make the rules, the State Governments do!


• How long can this go on for.


• Oh they propose tinkering with common contracts, pre-sale information, perhaps a new watchdog, industry protocols, industry accreditation but until governments fix the heart of the legislation nothing will stop this, but we don't like to draw attention to that.


• What do you mean by fix the heart of the legislation. 


• In the Victorian legislation for the property to be officially termed a 'retirement village' you can only purchase a right to become a resident, the developer although obtaining a price in the order of a purchase price does not by law have to transfer ownership nor can they rent it to you. 


• This hardly seems fair on older Australians compared to other forms of residential accommodation does it?   Perhaps but we don't make the rules, the State Governments do!


• These State Governments and the Federal Government don't really understand how this system works do they and particularly what it does to the hard earned life savings of older Australians.      Perhaps but we don't make the rules, the State Governments do!                                                                                                           

Despite a range of terms and conditions as described above, an increasing number of older Australians choose to live in a retirement village..

A Retirement Village unit, would you pay to live in one?