Resthaven prides itself on providing outstanding care and support for older people and their carers. Recent misleading and biased reporting in the mainstream media is most disappointing.
I’d like to provide some background and correct any misconceptions that may have been caused by an article that implied that Resthaven’s senior leaders are profiting from the fees charged to older people. This is simply not true.
Each of the matters raised are addressed below:
- Management salaries – the $9.08m quoted in The Advertiser on 22 January 2022 includes the salaries of every Program Manager, Senior Manager and Executive across all of Resthaven. The comparison between Resthaven’s reported executive salaries and those of other providers is not relevant as Resthaven has historically reported transparently on all of its managers, while other providers only report on their executive leadership teams.
- Surplus – Resthaven posted a $16.6m surplus in 2020/21, of which $13m related to investment income. Resthaven invests all residential accommodation deposits held on behalf of its residents in an investment portfolio, which moves in line with the share market. When the share market goes up, the value of the portfolio increases and this gain (or loss when the market goes down) is recognised in Resthaven’s surplus. A significant proportion of the 2020/2021 surplus reflects the improvement in the share market. Losses were recovered from the previous financial year, at the beginning of the pandemic, when the market fell, with an adverse impact on prior year’s results.
- Care Management Fees – pricing for home care packages is complex. The comparisons made in the article were not valid. Meaningful comparisons are difficult. The internal analysis Resthaven undertakes indicates that our administration and management fees are in line with those charged by other large and reputable providers.
As a not-for-profit public benevolent institution, with an 86 year history, any surplus made is used to improve the lives of older people.
Resthaven currently employs around 2,850 staff across 41 locations throughout metropolitan and regional South Australia.
Resthaven makes significant investments in the redevelopment of residential sites, with both Resthaven Bellevue Heights and Resthaven Westbourne Park currently undergoing major redevelopments, and Resthaven Community Services continue to expand, with new offices in Goolwa, Victor Harbor, Gawler and Goodwood and respite cottages in Aldinga, Victor Harbor and Toorak Gardens.
At a time when the sector and its people should be congratulated for our response to the COVID-19 pandemic, I question the motives behind the article.
Our people make an important contribution every day in the lives of older people. I thank them and am sorry for any upset this article may have caused.
Chief Executive Officer