Tasmanian government moves to bring aged care service into public system – $33 million spent to acquire Southern Cross Care aged care property 

3.9 hectares of aged care site, Rosary Gardens, in Hobart has been bought by the Tasmanian government. The purchase has been indicated as a move to facilitate a new mental health facility for older Tasmanians, to be constructed from the redevelopment of the asset. Monday saw the deputy premier Guy Barnett publicly announce the deal, verifying that the state government had formally signed an agreement to purchase the property from Southern Cross Care.

Timeline

With advocates calling for refreshed services and infrastructure for Tasmanian seniors there has been mounting pressure to show a government response. State officials have conveyed that the settlement of ownership transfer will be finalised at the end of September. However a masterplan of the redevelopment intentions for the overall site, that of St Johns Park Health and Wellbeing Precinct, will be due by the end of June.

Current residents in Rosary Gardens have been told that operations will remain open and functioning as normal until June 30.

Government messaging

Deputy Barnett has fronted media saying, “this is about investing and reinvesting in services that support Tasmanians with mental health illnesses and indeed complex dementia needs as well.”

Directly addressing what many advocates and industry leaders have shared, Barnet acknowledges the current facility is not able to support the standard of care needed under the current act. The revamped facility will specifically be an upgrade to what has been, and currently is, the Roy Fagan Centre. Barnett agrees, the centre is, “simply not fit for purpose”, even with the lease permitting continued use until 2029.

Shifting strategy

Originally government plans had been to build from scratch, with a completely new mental health precinct up until recently having been slated for St Johns Park. Now however, the current structures at Rosary Gardens will be redeveloped and adjusted to meet purpose needs.

Barnett has indicated this shift in strategy has been to meet previous outcomes of improved and upgraded services for seniors in the region, while staying within budget.

He publicly noted, “due diligence has been occurring for more than 12 months now.”

“Those discussions progressed further with Southern Cross Care deciding to put this property on the market later last year and so the government’s stepped up, seen the opportunity, taken it aboard with both hands.”

Rising costs

Provider heads have been growing in frustration and frank public messaging when it comes to the barriers faced in attempting to meet the gargantuan bed build rates needed.

From rising land and construction costs, provider leadership have called for increased reform. Particularly for low-interest loans across the nation, such as seen in WA, industry leaders have called for help combat the significant challenges to breaking ground on new capital projects.

When asked about whether the changed approach for St Johns Park was the government feeling this very challenge of rising construction costs, Barnett was unclear, instead opting to respond with backing the new approach, “this is a better option”.

“We’ve got 3.9 hectares here with lots of buildings that need to be brought up to being fit for purpose and then we’ll have opportunity for delivering even more and better services on this very substantial site.”

Insight into senior preference

While Rosary Gardens has up until the sale been Southern Cross Care’s biggest property asset, board chair Sonya Byers has shared that a key underpinning reason for the sale was to bring future strategy in line with client sentiment.

Highlighting a well-known trend, and cementing the preference further, Byers shares that Southern Cross Care overtly understands and seeks to respond to growing numbers of senior Tasmanians wishing to age and receive care in their homes rather than in residential care centres.

Honouring the need for services to care for those with greater needs, she shares, “we are pleased and delighted and reassured that Rosary Gardens will be repurposed and used as a home for older persons experiencing mental health.”

The funds from the sale are intended to be reinvested into the provider’s services, with Byers confirming that no other assets have been earmarked for sale.

Government strategy solidifying

As the government continues to pivot to meet rising calls for redevelopment, it is hoped that the Rosary Gardens buy is another clear indication of money meeting strategy.

With growing concerns over mental health resources in the state, advocates are closely watching the movement of this purchase through to final completion and functional operations.

Following on from the $80 million mental health precinct working through development after initial approval, Launceston seniors, loved ones and industry professionals are hopeful of significant change in meeting mental health needs and easing strain on the General hospital. As well, an additional $40 million facility is intended in the north-west of the state.

As the government approaches mental health leaders, experts and key voices across aged care and health services to help guide plans, many are aware of the need to ensure the finalised plans for all new facilities, upgrades and redevelopments meet the needs that are ever growing.