There is no doubt the two items on the national broadcaster’s 7.30 program, and media posts will, as it appears intended, hurt the retirement living sector, particularly the owners featured.
There is close to a total lack of balance in our view, as echoed by the NSW, ACT and QLD resident associations.
However, there are usually three sides to almost every story and it is evident to us that the ABC investigated just the easily sensational side to make easy headlines, with no consideration of the pain they will create – again.
Here are some facts to partway balance the books.
Story 1: Joan Green, a resident at Tranquil Waters Retirement Village in Victoria Point, Queensland. 7.30 mentioned briefly Joan has a disabled son but made a big fact of a 60% Exit Fee.
Balancing facts: In 2013 Joan approached the village asking to be a resident with her adult son, who has brain damage. Tranquil Waters had never allowed anyone to bring in a disabled child before. Joan needed somewhere her son would be cared for, be safe and not run into any harm.
(We have not heard of a village accepting such a situation, although we get many requests for help like this on villages.com.au.)
Tranquil Waters agreed they could enter and the son would be a signatory on the contract, so he always had a roof over his head. He would naturally live a lot longer than Joan. They offered a 60% Exit Fee or Deferred Management Fee.
Joan was advised to take legal advice; she signed a document acknowledging she waived that right.
Then Joan said she could not afford the Incoming Fee. The village agreed to a $15,000 cash rebate in the Incoming Fee.
Eleven years on and the son has been adopted by the community and is much loved. (Last month Joan left her son alone for two weeks when she entered aged care respite, much to the shock of the village residents.)
Story 2: Helen McPhee, a former resident of RetireAustralia’s Torrens Grove Retirement Village, whose brother complained she could never have understood the contract due to her cognitive decline.
Balancing facts: Helen visited the village three times before deciding to become a resident in 2020. She was coherent, drove a car and neither she nor anyone else notified the operator she had cognitive decline, which 7.30 said she had been diagnosed with in 2018. It was only in 2022 when she entered hospital that the village was made aware of her cognitive decline. She left of her own accord in 2024.
Story 3: Maurine Moore was featured last Thursday. She entered a Pinnacle Living retirement village in Melbourne and said it was “sheer hell”.
7.30 reported Maurine was an avid smoker who upset the other residents, complaining about the smell, and was forced to move from the village by the operator.
Balancing fact: It was the residents, not the village operator, who went to the trouble of getting a special resolution and 86% voted to ban smoking from the village entirely.
Another Pinnacle Living resident, John, was also featured, complaining about the rising fees which forced him to sell.
Balancing fact: John, as was stated, asked for his home to be put up for sale after two years. There was an offer for the home, at a figure suggested by the operator, but John held out for a larger fee which never eventuated, and he returned to his unsold home, and the fee structure.
The ABC presented the increasing fees as an operator initiative. It did not explain that the operator makes no net revenue from fees by law, and that residents have to approve the budget and the consequent fees.
Accusation: Amongst the most galling accusations of the ABC and 7.30 is they allege operators force residents to leave when the Exit Fee caps out at its maximum.
Balancing fact: The average village stay is actually increasing to nine years, two to four years more than the Maximum DFM for 89% of all villages.
If the ABC is correct and residents were being thrown out on the street nobody would be buying into villages and Australia’s aged care homes would have people queuing up with 25,000 village residents knocking on their door each year.
Yes, the retirement living sector can strive for excellence, but so can the ABC, as well as balance.
