Lithgow Aged Care: charity falls into voluntary liquidation, facility sold off

A new twist in the case of one of the state’s worst aged care providers has been revealed, as administrators seal the fate of hundreds of residents living at the Lithgow site.

One of the state’s worst aged care providers — which failed 38 of 42 requirements by the federal Aged Care Quality and Safety Commission, resulting in the cancellation of its accreditation — has been placed into voluntary administration.

However, fears residents living in the facility would be left homeless by the failing charity have been quashed, with administrators selling the aged care home to a new provider.

Lithgow Aged Care Limited was criticised by the commission for failing to treat residents with dignity and respect, as well as a series of flaws in the provision of safe care as part of an extensive review conducted in January.

Lithgow Aged Care. Picture: Facebook

The “unannounced” review of the regional aged care facility, conducted following several years of concerns the provider was failing to meet quality standards, found “its compliance with Aged Care Quality Standards had significantly deteriorated, with it failing to meet 38 of the 42 requirements under the eight Aged Care Quality Standards”, according to Aged Care Commissioner Janet Anderson.

“The Commission made a decision in February 2021 not to re-accredit the Lithgow Aged Care residential service — beyond expiry of accreditation on 16 April 2021 — after the Commission identified that there was an immediate and severe risk to the safety, health, or wellbeing of residents at the service in December 2020 and in January 2021, found that the service’s compliance with Aged Care Quality Standards had significantly deteriorated,” the commissioner told NewsLocal.

Ms Anderson said the commission allows for “reconsideration and review of certain decisions” which was applied for by administrators of the facility.

“This reconsideration took into account further information provided by the administrator recently appointed to the service and acting on behalf of Lithgow Aged Care Ltd, about actions it had taken to mitigate risks and make improvements to care and services,” she said.

Janet Anderson, new Aged Care Quality and Safety Commissioner, photographed near their offices in Parramatta in Sydney's West.

“Arising from its reconsideration process, the Commission set aside its original decision on April 6 and has now accredited the service for a period of three months until July 16, 2021.”

The commissioner said the short period of accreditation would see the administrator work to rectify areas of noncompliance.

Last month, administrators Ernst and Young were appointed to externally oversee the to-for-profit facility.

In a statement issued to NewsLocal, an Ernst and Young spokeswoman said administrators Henry Kazar, Justin Walsh and Lachlan Abbott, announced the sale of business and assets of Lithgow Aged Care to Respect Aged Caret completed on April 16.

“Respect has now taken over operation of the aged care facility and in doing so has retained the vast majority of employees of Lithgow Aged Care,” the spokeswoman said.

“Contracts between residents and Lithgow Aged Care have been novated to Respect and all residents remain at the Facility.

Lithgow Aged Care. Picture: Facebook

“The Administrators believe this is a great outcome for the people of Lithgow and in particular the residents of Lithgow Aged Care and would like to thank the Lithgow Community for their support, co-operation and patience during this difficult time.”

Lithgow Aged Care board representative Olwyn King said “good aged care services are critical”.

“As a small provider, LAC has faced many challenges. Respect understands these challenges and by taking ownership and responsibility, they would be able to use their expertise to maintain and improve our service.”

While Respect managing director, Jason Binder, said residents “loved the place and didn’t want to move”.

“It will be challenging for staff to adapt to new systems and processes, but I’m confident in them and we’ll do it as a team,” he said.

Expansion of Lithgow Aged Care. Picture: Supplied.

The managing director said expansion of the facility would continue — after the facility was compliant of care: “we will continue the development of the site up to 108 rooms plus a specialist secure dementia area of 30 rooms”.