In tears over price hike

‘Sobbing her heart out’, elderly woman hospitalised to be treated for anxiety

Arest home resident was left inconsolable after her family was told the cost of her “premium” room would more than double — meaning she’d have to move.

But the Tauranga facility, Ultimate Care Oakland, has backed down after Herald on Sunday inquiries revealed jacking up the cost breached the 74-year-old’s admission agreement.

Charges for extras like an en suite or garden access is a lucrative income stream for rest homes, with most now offering costlier premium rooms.

Lynda Richardson moved into Ultimate Care Oakland in August, after her family checked out several facilities and different rooms. The room she chose was a bit bigger, had an en suite and cost $9 extra a day.

Her daughter Krystina Richardson budgeted carefully for the $3285 annual cost. Last week she was told the daily charge would soon go up to $20 a day, or $7300 a year.

“I was just in disbelief that this could happen. The room has all mum’s furniture from her house, it’s got her buffet, her drawers, a fridgefreezer, her own bed and La-Z-Boy chair. All of that would have to go if she was put in a smaller room.”

Lynda was hospitalised with suspected lung or heart problems, her daughter said, but those were ruled out and doctors concentrated on treating her anxiety.

“She’s just been sobbing her heart out,” Richardson said, adding that the stress had been compounded by the death of Lynda’s cat.

“She’s lost weight, and can’t keep food down because of the anxiety.”

Richardson contacted a community law centre, the local DHB, Commerce Commission and Health & Disability Commissioner (HDC). She was also unhappy that on three occasions prior to the notice of price increase a manager took people through the room when her mother was there.

Jill Darcey, general manager operations at Ultimate Care Group, which runs Ultimate Care Oakland and 19 other facilities, said viewings only happened with a resident’s consent, which she understood was given.

Darcey initially declined to

comment on the charges applied to the room, but said a wider review of premium room charges was done after five years of no increases.

Her position changed after the Herald on Sunday sought comment from the NZ Aged Care Association, which represents 90 per cent of rest homes.

Simon Wallace, the association’s chief executive, said facilities cannot charge more than what is agreed in the admission agreement. Charges can be renegotiated when the contract is renewed on July 1 each year.

Wallace brought this to the attention of Ultimate Care Oakland, which subsequently apologised to Richardson and agreed to retain the $9 daily extra charge.

“If residents and/or their families have a complaint of this nature, they should first discuss it with the rest home facility manager, then the local DHB and if necessary the HDC. They can also speak to us for clarity on rules relating to these charges,” Wallace said.

Darcey said the premium charge was wrongly reassessed by a regional manager who acted above her authority. “We regret any distress this may have caused, and will be engaging with the resident and family accordingly.”

Richardson, whose mother remains in hospital, said that was a good result, but she was braced for the cost to be put up in July next year.

She wanted others to be aware of their rights and for more empathy to be shown to older residents.

Consumer NZ has previously raised concerns about premium rooms being misrepresented, including the false impression they provide a higher level of care.

Last year the Herald reported the case of Ruth Schumann, who was refunded after an aged care facility unlawfully charged for her husband’s premium room.

More than 34,000 New Zealanders live in aged care facilities, a number projected to reach 58,000 by 2030.