Respect acquires sanctioned Lithgow home

Not-for-profit aged care provider Respect has entered into a binding sale agreement to acquire Lithgow Aged Care, an aged care home about 150 kilometres from Sydney.

Voluntary administrators Ernst and Young, who were appointed on 16 March to address Lithgow Aged Care’s immediate solvency concerns, commenced a sale agreement with Respect Aged Care on 12 April.

The sale, which is expected to be complete on 16 April, will bring Respect Aged Care’s portfolio to 13 aged care facilities in Tasmania, Victoria and New South Wales.

Lithgow Aged Care in the New South Wales Central Tablelands has 68 residents and 125 staff.

The facility was sanctioned by the quality regulator on 18 December after failing to meet six of the eight standards during a site audit in October. A performance audit in January found the facility non-compliant in all eight standards.

During the administration period, most residents at Lithgow Aged Care remained in place and will continue to remain at the facility after the sale, EY said in a statement this week.

“Discussions with those residents who left the facility during the administration period have been positive with most indicating they would like to return if a successful sale was achieved,” EY said in a statement.

Respect has indicated it will offer employment to most employees at the facility, EY said.

“Any employees who are not offered employment at the facility will receive payment of their unpaid entitlements in full,” EY said.

The administrators believe the sale is a positive outcome for the residents and the Lithgow community.

According to its website, Respect’s mission is to care for senior Australians in its communities in an environment of respect, value and belonging.

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