Services:

• Enliven
• Family Works
• Real People
• Cranford Hospice

Presbyterian Support East Coast Announces Decision to Sell Residential Elder Care

“It is with a mixture of sadness and optimism that Presbyterian Support East Coast announces its intention to sell its residential elder care facilities in the Hawke’s Bay as going concerns” said Mr Shaun Robinson CEO.

“The Board has considered a wide range of information, including feedback from a month long consultation process with residents, staff, families, parishes and the community” said Mr Robinson. “It has concluded that residential care is not sustainable for Presbyterian Support under the current circumstances and its intends  to sell: Woburn in Waipukurau, Duart in Havelock North, Eversley in Hastings and Atawhai in Taradale”.

Detailed decisions about Dunblane in Gisborne are being delayed until July to provide more time to consult with the Dunblane Action Group (a community group formed to consider the proposition to sell that facility). “Presbyterian Support has made it clear that its aim is to release capital from Dunblane due to the financial risks involved in the sector” said Mr Robinson. “The Board also acknowledges the strong desire of Gisborne people that the facility maintain a close community and parish connection.”

“This has been a very difficult decision” said Mr Robinson. “The services have been built on a triple partnership between the community, Presbyterian Support and the Government. We are mindful that community relationships at many sites go back up to fifty years.”

“However, the government has reneged on its part of the partnership by reducing the value of funding and pushing up costs” said Shaun Robinson. “For Presbyterian Support between 1998 and Dec 2004 our costs went up over 36% and our fees only 10.5%. After months of intensive lobbying and media attention, the budget in May was a let down, providing no level of catch up on the lost ground” Mr Robinson said. “To top it off, the government has funded District Health Boards to increase their nurse’s salaries by 20% but has not done the same for our staff, creating a wage gap of $15,000 to $20,000pa”.

“It is not surprising that many charitable providers are reluctantly exiting rest home and hospital elder care” said Mr Robinson. “The Salvation Army, the Auckland Methodists, and the Hastings St John of God all announced sales in 2004 and two other Presbyterian Support regions have sold their facilities in the last few years” commented Mr Robinson.

“With the funding the way it is, residential care is increasingly becoming the domain of large national and multi-national providers who have massive economies of scale and other income from retirement villages” said Mr Robinson. “Just last week the Macquarie Group of Australia bought all of ElderCare NZ (which includes the Gracelands facility in Hastings) having recently bought the Australian Salvation Army homes.”

“In spite of all this change Presbyterian Support East Coast remains optimistic for the facilities it aims to sell and for our role in supporting older people” said Shaun Robinson. “The experience of Presbyterian Support in the Upper South Island and Northern regions and of the St John of God in Hastings, is that the standards of care are maintained by the new owners of the services. Families and residents say they have not noticed much change. This is not surprising because they are being cared for by the same staff, who still have their jobs” said Mr Robinson. “We are confident that we can make sales that achieve minimal change for residents and staff”.

Presbyterian Support is also very clear that its commitment to older people will continue. As the number of older people increases the need for new types of services supporting them and their families is also growing. We have started providing innovative services such as the Evergreen Circle that supports older people to live in the community (this service will be expanded to Gisborne in the coming months).  Other parts of Presbyterian Support have also proven that there are a range of new ways of caring for older people in the community that really work” said Mr Robinson.

“In the Hawkes Bay and Tairawhiti there are many gaps in what is needed to support the aging population. Presbyterian Support is committed to being pioneers in filling those gaps. We will work with residential care providers and others to ensure that the full range of support for older people is available” Shaun Robinson stated.

Presbyterian Support East Coast appreciate that many people may have on-going questions and concerns about the sales. If anyone would like to ask any questions please:

• write to the CEO, PO Box 8119  Havelock North
• email   admin@supportec.org.nz
• telephone 06 877 8193 and tell the receptionist that you have a question about the sale of residential care.
• Look on our website  www.ps.org.nz/eastcoast

End

For more information contact:
Shaun Robinson
06 877 8193
0274 446 382