A sustainable model for aged care in the North-East is well on its way to fruition, according to the Dorset Council.
In an update due to be delivered to the community at Monday’s council meeting, general manager Tim Watson said the process had been helped by “overwhelming support and encouragement from the community”.
In 2015, Presbyterian Care Tasmania announced it would wind down the 32-bed facility over a 12-month period, but Swansea's May Shaw Nursing Home indicated an interest in taking over the facility.
To ensure the long-term viability of aged care providers in the region, a merger was planned between the Aminya and James Scott facilities, with a subsequent redevelopment to occur at Scottsdale.
The state government, Dorset Council and May Shaw have negotiated to share the financial risk between the three parties.
“Council’s total exposure is likely to be in the vicinity of $400,000 to $500,000,” Mr Watson said.
“To put this in context, this amounts to approximately $125,000 per annum over the four-year period that it will take to deliver the sustainable solution.
“This is obviously extremely good value for money for the community to secure aged care in the North-East.”
According to the council agenda, the state government will fund the operational losses of Aminya between December 1, 2015, and April 30, 2017, and provide funding to cover transitional losses from May 1, 2017, on a sliding scale for a period of three years.
The Dorset Council and May Shaw will equally share any extra financial exposure including the purchase of Aminya from Presbyterian Care Tasmania, employee entitlements relating to those employees transferred from Presbyterian Care Tasmania, capital expenditure required on the transfer of both facilities, and facility manager’s employment costs, which were not reimbursed by the state government.
“The final element in the arrangement between council and May Shaw is the provision of two low interest rate loans with a term of 10 years,” Mr Watson said.
“The first loan will be a line of credit to a maximum of $2 million, which May Shaw will utilise to assist in the funding of the impending $5 million redevelopment of the Aminya facility.
“The second loan will encapsulate the purchase of Aminya from council and May Shaw’s agreed share of the financial exposure.”
The council plans to raise two loans with TasCorp to secure long-term low interest rates, and implement mirror loans with May Shaw.
The community was also commended for raising more than $57,000 to support the plan.