‘We have no dreams’: Retirement village residents cautious about merger

Village at the Park residents are unconvinced by assurances that little will change after 20 percent of maintenance staff were laid off before the merger.
Photograph: Google Maps

Residents of a Wellington retirement village are concerned about the quality of care patients at the hospital will receive if it is taken over by a US private equity firm.

A letter sent to residents of Arvida’s Village in the Park in late October stated that the acquisition of Arvida by Stonepeak was expected to occur on November 20.

Arvida chief executive Jeremy Nicoll’s letter said no changes were expected within Arvida’s village, maintenance or leadership teams.

But independent living resident Jiff Stewart said residents were not convinced by assurances after Arvida laid off 20 per cent of its care staff ahead of the merger.

Arvida had previously denied that the cuts were caused by the merger.

“A large number of people have purchased independent housing because Arvida has such a good reputation for the quality of its hospital and dementia care,” Stewart said.

“We have no illusions. We know where we are heading and we chose to pay well initially and subsequently so that we could increase our chances of securing this quality care.”

He said residents are concerned about the quality of care they will receive under an investment company.

“We can find no evidence that Stonepeak has any experience in this area of ​​procurement, and we are particularly concerned about what will happen to people in care facilities because care facilities do not make money.”

Stewart said the message reassuring residents there would be no changes was sent only to residents living independently, not those in care.

RNZ asked both Arvida and Stonepeak about the level of care for residents.

In response, Arvida said: “The acquisition was widely reported and consistently communicated clearly. As part of this, we reiterated that there were 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 concerns from residents, particularly those waiting to move to the hospital side as they get older or need more intensive care.

“When people have already arrived somewhere and perhaps are in poor health, needing a lot of support, it can be extremely difficult for residents to try to move to another retirement village or aged care facility. Limited options leave owners and investors at a loss for what people deserve and expect.” “It puts us in a prime position to make a profit without providing the service,” he said.

“If something like aged care is seen by some overseas investors as an investment just to milk them, then there is a real concern that our elderly will not be able to get the care they need and the staff who care for them will suffer in worse conditions” Genter said.

He said residents have already noted a decline in the quality of care due to fewer staff and are concerned they won’t receive the continuity of care they expect.

“Elder care is in the public interest,” Genter said. “We must all invest in ensuring that we have high levels of care and support and that residents and staff in these facilities have good working conditions, (and) residents have a say in the standard of care.”

Earlier this month, aged care workers’ union E tū presented a new report in Parliament on the state of the country’s care and support sector.

Transformative Care The report highlighted a range of issues in the sector, including residential aged care, home support, disability support, mental health and addiction support.

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