New $130m SA-led aged care push by Padmans
A prominent South Australian commercial property owner who once dominated the state’s aged care sector is investing more than $130 million in the same industry, creating about 650 long-term jobs.
A prominent South Australian commercial property owner who once dominated the state’s aged care sector is investing more than $130 million in the same industry, creating about 650 long-term jobs.
The Advertiser can exclusively reveal the details of the investment by Viv Padman — owner of prime Adelaide CBD property 151 Pirie Street (KPMG) — to build his aged care business, Premier Health Care.
In 2014, Viv and wife Florence sold their previous business Padman Healthcare, a 13-facility operation across SA and Queensland employing more than 1000 staff to Estia Health, owned by private equity firm Quadrant.
That $150 million-plus deal did not involve land assets owned by the Padmans and helped them pay out all the debt on the business, established in 1984.
After a four-year break, Mr Padman has started rebuilding a new aged care empire across the two states — this time with a succession plan being developed with his daughters, lawyer and Premier Health Care legal adviser Reena Costello and oncologist Dr Sunita Padhye, who is also a clinical adviser to the family business.
“Overall our under construction and development program is in excess of $130 million and if we are successful with our license applications, we will be able to create some 650 jobs in future,” Mr Padman said.
The investment is spread across a number of facilities.
The under-construction portfolio includes the $20 million facility at Myrtle Bank offering 80 jobs on completion, and two facilities in Queensland at Sunshine Coast ($22 million/110 jobs) and Gold Coast ($25 million/110 jobs).
Recent acquisitions are the Claridge at Valley View (formerly the Valley View Nursing Home) which has 65 staff and The Lexington in Beulah Park that employs 40.
The future pipeline projects include a $20 million aged care facility at Hindmarsh Island, creating 100 jobs and one at Findon for $30 million (150 jobs) — both of which are subject to Premier securing the necessary licenses.
It follows the completion of its resort-style $35 million facility in Hervey Bay in Queensland, The Waterford, which will be the model Premier intends to follow for the new facilities in SA.
Another $20 million facility is planned for Gympie, Queensland, creating 100 jobs.
Premier’s plans come as the aged care industry faces a significant overhaul with a royal commission inquiry into quality and safety established in October led by Joseph McGrath and Lynelle Briggs.
It followed more than 5,000 submissions received from aged care consumers, families, carers, aged care workers, health professionals and providers — and reports of abuse by carers across facilities.
Details of state hearings and submissions are yet to be finalised but the commissioners are due to provide an interim report by October 31, 2019.
“Australia has one of the aged care systems in the world — let’s not lose sight of that,” Mr Padman said.
“Some of what has happened in recent times is appalling — and it’s sad because there have actually been dramatic improvements in aged care.
“The single biggest issue is the lack of comprehensive training of staff at the carer, registered nurse, director and admin levels.
“What we are now experiencing are growth pains that can easily be addressed with a concerted commitment to effective training.”
When the previous business was sold, a registered training organisation was also part of the deal, but that has since been shut down amid industry criticism of a lack of state and federal funding to support training providers.
“When you operate in the market we do, complaints are common, but we are encouraging communications about how we can get better and perfect what we are doing.”
He said the industry was already “drowning in regulation” and there was more on the way from July 1.
Florence, Premier Health Care’s training director said the group was careful to select staff that have not only strong technical skills, but are able to connect with consumers to provide individualised care in accordance with their rights and choices.
“With a more culturally and linguistically diverse workforce and consumer base, our challenge is to ensure our training and education meets the requirements of both our staff and consumers,” she said.
Premier intends to reinstate a clinical leadership and coaching program, which identifies, challenges, and trains emerging leaders within our workforce.