By Clay Lucas
September 17, 2020 — 11.35pm
A consultant to the federal Health Department warns aged care homes face insolvency as providers are forced to hand back millions of dollars in deposits as residents exit the system amid the coronavirus pandemic.
With 582 Victorian aged care residents dying in the last nine weeks as coronavirus swept through homes, the warning of a wider impact on the $25-billion-a-year industry has been sounded by Ansell Strategic, a consultant to many of the larger home providers
Ansell Strategic managing director Cam Ansell said in a memo to the Health Department, tendered to the aged care royal commission this week, that the second wave of COVID-19 in Victoria would hit many nursing home operators hard.
“The compounded effect of the first shutdown with the current increased spread of the virus will lead to potential insolvencies happening during the infection period,” Mr Ansell wrote.
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