Grants feeding profits claim

Aged-care food worry

AGED-CARE bosses are turning huge profits from billions in taxpayer subsidies while seven out of 10 of the elderly people in their care are malnourished.

Prime Minister Scott Morrison has called for a royal commission that is expected to put the aged-care fat cats under the same scrutiny endured by bank chiefs.

“It is very common for nursing homes to try and save money on food,” said Paul Versteege from the Combined Pensioners and Superannuants Association. “Malnourishment rates in nursing homes are estimated to be between 50 and 70 per cent.”

But at the same time as residents survive on meals reportedly costing $6 a day, the six big for-profit companies running nursing homes in Australia raked in $2.17 billion in taxpayer subsidies from the Federal Government.

A report by the Tax Justice Network this year said those funds made up almost threequarters of the big companies’ $3 billion revenue.

Those companies made a $210 million profit and at least one of them — Allity — paid no tax last year.

Estia Health, which has residences in Grovedale and Leo- pold, is listed on the stock exchange and turned over $547 million last year — threequarters or $404 million of that came from taxpayer-funded subsidies.

Estia’s chairman is highprofile independent director Gary Weiss. Weiss received $250,000 as chair of Estia. Outgoing CEO Norah Barlow took home $1.034 million in pay and perks in the last financial year.

She welcomed a royal commission and said: “Caring for the elderly is a privilege and enormous responsibility. We will continue to work with government to build a viable sector that older Australians deserve.”

Listed aged-care company Japara handed CEO Andrew Sudholz $2.09 million in pay and perks, including $990,000 in bonuses in the 2017 financial year.

At the same time as the company reported a profit of $29 million it ordered staff to not check on residents overnight in a move criticised as a way to reduce staffing.

Japara has aged-care residences in Grovedale, St Albans Park, Anglesea, Torquay and Norlane. It took around 72 per cent of its revenue from government funding and subsidies — $254 million. According to the Tax Justice Network its revenue per bed was $282 a day.