The Melbourne Age is reporting regularly on the court case currently running between the management of Primelife and former CEO, multi-millionaire Ted Sent. There have been days of reports of alleged incidents of phone taps, video surveillance, payments to ‘underworld’ figures and secret taping of board meetings...

Primelife is into aged-care health and housing in a big way. It seems that, by late 2002, this company was running about one in five retirement villages across Australia – some with hostels and nursing homes. 

Other companies are on the bandwagon now too. For example, Macquarie Capital Alliance Group has 98 per cent of a company called Retirement Care Australia (RCA). RCA owns 26 aged-care facilities, including 14 bought from the Salvation Army in Victoria and managed by TriCare; the Moran Health Care Group manages the others. 

How do you get to be an aged care provider these days? What are the qualities and skills required? Who is considered to be ‘fit and proper’ to care for vulnerable frail older people? A cursory glance at the Principles of the Aged Care Act 1997 indicates that ‘the Secretary’ must have regard for the suitability of any applicant to provide care. 

These Principles refer to the need for the applicant to be honest, and among other things, to have fulfilled certain financial obligations and to demonstrate some experience in care of aged and/or disabled persons. It is very hard for someone on the outside to know just how this really plays out in practice, but I am aware that there are those who have serious doubts about the efficacy of the current regime in regard to probity checks and regulation.

Years ago, when our family was seeking a nursing home place for a relative, we trawled through a series of dreary, smelly old houses and mansions all converted into nursing homes - every dark nook and cranny with a bed, and a sad old person, in it. This was private-for-profit aged care, cottage industry style and not at all nice.

Now the big corporations have discovered that there is a dollar in aged care. After all, they have the assurance of an increasing number of frail oldies and the daily subsidy that accompanies them. Corporate facilities usually look good – those motel-like rooms are nothing like the dank old corners of past nursing homes. But what about the care?

We do know that corporate aged care is generally large scale. Some facilities accommodate more than 100 high care residents. Perhaps such economies of scale might mean that there is better care? Well no, not necessarily. Large facilities fail accreditation standards too. 

Then there is the matter of staffing. Here is where the corporates can really save their dollars. One trained nurse to oversee the care of those hundred or so high care residents! Please!!

And now for the latest news. Reports are coming in thick and fast that aged-care staff across the country are being made redundant, or having hours of work cut, thanks to the new Work Choices legislation. 

All this is happening in a sector which already cannot attract adequate skilled staff and is struggling to provide half-way adequate care for residents. 

Cottage industry or corporate care?  How about community responsibility?