Exodus as pressure builds on aged care sector

Two executives at a leading aged-care provider have left the $600m company as the industry feels the royal commission strain.

Estia chief nursing officer Maryann Curry. Picture: Phil Rogers

Two executives covering clinical and quality care at aged-care provider Estia Health have left the $600 million listed company just weeks after the royal commission into the sector began, the latest movements in an industry under significant strain.

The Australian can also reveal Bupa Aged Care has drawn the eye of the royal commissioners after its 14th facility in less than six months failed quality standards, a figure that means one-fifth of Bupa’s 72 facilities are currently subject to a noncompliance notice or sanctions.

The company, which is headquartered in Britain, announced in December its chief executive, Richard Bowden, would retire in April.

Earlier this month Ross Johnston — the managing director and chief executive of the largest listed aged-care provider, Regis Healthcare — announced he would step down from the company in September.

Estia Health and Regis have together already spent more than $1.2 million on legal and staff costs to comply with an early request from royal commissioners Richard Tracey and Lynelle Briggs to provide five years’ worth of data summarising every instance of substandard care and abuse.

Regis reported an almost 13 per cent drop in half-year profit compared with the previous year, citing government funding ­restraint.

Estia chief nursing officer Maryann Curry has left the company after two years to set up her own consulting business and has not yet been replaced.

Her executive colleague, Mary Burke, the chief quality and risk officer, has also resigned to join UnitingCare.

Executive recruitment firm Ccentric Group advertised the position earlier this month.

“This position reports directly to the CEO, which is a reflection of the role’s importance within the business, and is focused on ensuring that already high levels of quality and compliance continue to be met, particularly through the introduction of new industry standards later this year,” the ­notice says.

“This is a strategic position, not only tasked with identifying issues but also to work alongside state managers and the executive team to solve problems and improve quality through innovation and international best practice.”

Ms Burke’s position is being covered in an acting capacity by Estia’s chief policy and regulatory officer, Mark Brandon.

Ms Curry is still attached to perform some consulting work for Estia, but the company did not respond to a request to clarify whether her former duties have temporarily passed to another member of the executive.

Of the more than 2000 aged-care providers in Australia, fewer than half have responded to the royal commission for its first information request, with some missing the deadline by more than a month.

Commissioner Lynelle Briggs addressed a hearing last week, saying she has “noticed a … reluctance on the part of providers” to disclose information to the commission, even though it has the power to compel organisations to do so.

“We’ve noticed a similar reluctance by providers to voluntarily provide this royal commission with data on quality and safety, and their views about the current state of the industry and what needs to change,” Ms Briggs said last week.

“What do these practices tell us about the willingness of the industry to be open and transparent about their caring and pricing ­arrangements?”

The royal commission will hold a community forum at the Bankstown Sports Club in Sydney tomorrow from 1.30pm.