Estia Health has backed the ANMF’s call for greater transparency and accountability for companies that receive large amounts of government funding.
Estia is one of Australia’s biggest for-profit nursing home companies with 68 homes and 7000 staff in four states including NSW.
Estia’s chief executive officer and managing director, Norah Barlow, told the Senate inquiry the company “saw merit” in recommendations by the ANMF and Tax Justice Network.
These would require companies that receive more than $10 million in Commonwealth funds in a year to file more detailed financial statements with the Australian Securities and Investments Commission (ASIC).
They would also require full disclosure of related-party transactions which reduce tax liability.
Ms Barlow told the inquiry: “We agree that accounts should be filed with ASIC and that the ability to have reduced disclosure for organisations receiving public funding should be removed.”
“We also agree that related-party transactions must be fully disclosed.
“It is clear that the revenues Estia receives from the government are directed to the provision of residential aged care. That is what we do. It is not so clear how others, including the very large and the small not-for-profit providers, utilise the subsidies they receive.”
Nurses reported increased workloads following Estia’s 2015 purchase of NSW aged care facilities from Hutchinson Health and Kennedy Health Care.
A survey of NSWNMA members at those facilities showed that workloads increased for most nurses following the acquisitions, the union said in a submission to the inquiry.
56.3 per cent of staff surveyed said their workload had increased, with 38.8 per cent giving fewer nurses as the reason. 46.3 per cent blamed additional duties and 19 per cent said shorter shifts were the cause.
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