https://www.nzherald.co.nz/nz/auckla...CIVS7QCTQYJDQ/
Something sounds fishy
Printable View
https://www.nzherald.co.nz/nz/auckla...CIVS7QCTQYJDQ/
Something sounds fishy
Yeah someone's lying about the situation.
I'm actually guessing the truth is because of the government's failure to increase care costs Oceania has chosen this facility as a sacrificial lamb. To show the government if they don't do something soon bigger facilities will close as well.
Will be interesting to know, given that we all know pure rest home care is unprofitable, and this Wesley Care Centre is an operating lease providing pure care services, i.e. Oceania will be making a loss on operations, whether they are just quiting the loss, or some other reason.
Heartless it may appear to be, but right there is the ethical conflict you have as a shareholder, whether you're happy to make a loss at the Wesley Care Centre or cut the losses by not continuing the operating lease. Dig deeper into how many other properties are pure care, operating lease arrangements.
I'm not sure how I feel about this yet, as a shareholder. I'd like to know a bit more about the circumstances for this decision. I'd also like to know what arrangements OCA have to relocate their residents.