AN OPEN LETTER TO THE PEOPLE OF SINGLETON
The Board of Mercy Services has become aware of certain commentary that is currently circulating on social media regarding the closure of our 44-bed aged care facility in Singleton.
The reason for the closure is that our facility has been running at a loss for a decade; and these losses have been compounded by our small scale and ageing infrastructure. The home has managed to continue operating through subsidies from Mercy Services, which is a non-profit organisation. We had no recourse to the residents, many of whom are on pensions, to cover the increasing cost of their care; and we were already drawing the maximum available funding from the Commonwealth Government. Mercy Services propped-up Singleton for as long as we could to ensure its solvency and ability to operate.
The Board examined options to offer the facility to another like-minded operator, but no-one would touch it. The Board also examined options to build a new facility away from the flood plain where we are currently situated. However, even after possible Government grants, Mercy Services does not have the balance sheet to borrow the funds that would be needed (about $40m).
At times like this, it is a natural human reaction to want to blame someone. There is no-one to blame. Management acted with diligence, ensuring the level of care was never compromised. The Board and its predecessor members supported Singleton for years longer than might have been tolerated by a commercial operator and did so out of compassion for its residents. The Government delivered on its statutory funding. And the Sisters of Mercy were generous in providing the premises for Mercy Services to operate.
Everyone hoped that eventually things might improve and the economics of the Singelton facility would stabilise. The reality is that our operating environment has irreversibly changed and smaller, stand-alone providers like us are no longer viable. This is not unique to nursing homes. We have seen the same economic challenges in many other sectors across our economy, with each bringing a level of magnified pain to those most affected.
In October 2024, the Board concluded that an orderly closure was the only remaining option, and immediately informed staff and all our residents and their families. For the next 5 months, the Board put in place programs and support to help our residents to find suitable alternative accommodation. During this period, most residents and their families have made use of these services.
We have also worked with our staff to ensure the maximum notice period; and provided retention payments to those affected to ensure our care was never compromised.
Mercy Services has also worked closely with the Commonwealth Government and followed all its processes - including the requirements to give formal written advice to any remaining resident within the final two weeks of closure. This formal notice was issued to the last three remaining residents and their families earlier this week. All three residents are progressing alternative accommodation arrangements, and we will work with their families to ensure a smooth re-location.
We would like to assure the Community of Singleton that we did all that we could to find an alternative outcome to closure, but regrettably, closure became the only option. And in undertaking this closure, our staff and management have worked tirelessly to ensure that the dignity and respect of all our residents were upheld, in the tradition of our Mercy founders.
Regards
Charles Reis
Chairperson, Mercy Services