Troubled resthome forced to merge
A Rangitikei resthome may have to merge to survive after attempts to seek a bailout from ratepayers were turned down.
Edale Aged Care in Marton – the only aged care facility in Rangitikei – is in talks with the Masonic Villages Trust as it scrambles to stay afloat.
The resthome’s board was rocked in September last year after it discovered fraudulent activity, of which $140,000 was due to financial mismanagement and $60,000 related to wages.
The alleged fraud and mismanagement led to the closing of its dementia unit and an approach to the Rangitikei District Council for a ratepayer-funded interest-free cash injection.
A 48-year-old Marton woman is due to appear in the Whanganui District Court later this year.
Edale Trust chairman Dudley Brown said the council rejected the proposed loan as the rest home was not in ‘‘dire straights’’.
‘‘They haven’t said no. It’s just a ‘not yet at this point’,’’ he said.
Brown said pressure on small, stand-alone aged care providers had increased following the Government’s decision to award pay equity for caregivers. ‘‘This means our trained and loyal staff are now appropriately rewarded, but their wage increases have not been fully funded by the Government, leaving the trust with a shortfall to meet.’’
The trust had relied on donations from the community to survive and the proposed merger would secure the future of aged care in Marton.
Negotiations were still ongoing and Brown was unsure how the proposed merger would affect the resthome.
The trust’s board was making ‘‘constitutional changes’’ to enable the merger, he said.
The two parties signed a memorandum of understanding in August.
A decision was expected in October on whether or not the merger would go ahead.
The Masonic Villages Trust, a registered charity, has been in operation since 1967 and services 11 resthomes in the lower North Island. Edale would become the 12th. ‘‘Edale cannot continue to rely on the generosity of the Rangitikei community in order to meet its financial obligations,’’ Brown said.
‘‘It’s not fair to hire staff on the basis of only receiving donations.
‘‘It’s just about finding some sure footing.’’
Edale would retain its name and staff, but changes to its day-today operations were likely.
The move provided staff with greater job security and more professional development, Brown said.
‘‘We need to do the due diligence – obtain consents from agencies such as the district health board.
‘‘Once a clear position has been reached, we will provide more details to the community.’’
Masonic Villages Trust chief executive Warwick Dunn said Edale Aged Care would fit ‘‘very well’’ under the Masonic umbrella.
‘‘Also, there is strength in numbers – having villages and care facilities in towns across the southern North Island makes each village more resilient and their residents more secure,’’ he said.