Village at the Park residents are not convinced by reassurances that little will change after 20 percent of care staff were cut ahead of the merger. Photo: Google Maps
Residents at a Wellington retirement village are concerned about the quality of care hospital patients will see under a takeover by a US private equity firm.
A letter sent to residents of the Arvida-owned Village at the Park in late October said the acquisition of Arvida by Stonepeak was expected to occur on 20 November.
The letter from Arvida chief executive Jeremy Nicoll said no changes were expected to the village, care or leadership teams of Arvida.
But independent living resident Jiff Stewart said residents were not convinced by the reassurances after Arvida cut 20 percent of care staff ahead of the merger.
Arvida has previously denied that the cuts were due to the merger.
"A large number of people have bought into the independent housing because Arvida has had a very good reputation for the quality of its hospital and its dementia care," Stewart said.
"We have no illusions. We know that that is where we're heading, and we have chosen to pay good money upfront and downstream so that we could enhance our chances of securing this quality care."
She said residents were concerned about the quality of care they would receive under an investment company.
"We can find no evidence that Stonepeak has any experience in this field of acquisition and we are particularly concerned about what is going to happen to the people in the care facilities, because the care facilities do not make money."
Stewart said that the message reassuring residents that there would be no changes was also only sent to residents living independently and not those in care.
RNZ asked both Arvida and Stonepeak about the level of care for residents.
In response Arvida said: "The acquisition has been widely reported and openly communicated consistently throughout. As part of this, we have reiterated there are no changes to any of our communities as a result of the transaction."
Concerns for the aged care sector
Rongotai MP Julie Anne Genter had also heard from residents with concerns, especially from those expecting to shift over to the hospital side or needing more intensive care as they age.
"Once people are already in a place and they're maybe in a condition of poor health, of needing a lot of support, it can be extremely difficult to then try to move to a different retirement village or aged care facility so the residents have limited choices, and that puts the owners and the investors in a prime position to extract profit without delivering the service that people deserve and expect," she said.
"If something like aged care is just seen as an investment to milk by some overseas investors, then there's real concern that our aged persons are not going to receive the care that they need and the staff looking after them are going to be suffering under worse conditions trying to care for our elderly," Genter said.
She said residents had already noted that there was a reduced quality of service as a result of fewer staff and they were concerned they would not receive the continuity of care that they expected.
"Aged care is a public good," said Genter. "We all should be invested in having high levels of care and support, and that residents in these facilities and staff have good working conditions, [and] that the residents have a say in the standard of care."
Earlier this month union for aged care workers E tū presented a new report into the state of the country's care and support industry at Parliament.
The Transforming Care report highlighted several problems in the industry, including in residential aged care, home support, disability support, and mental health and addiction support.
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