Carol Altmann – The Terrier

The plot thickens around the departure of the Lyndoch Living CEO, Doreen Power, with speculation that Ms Power’s sudden exit up the Princes Highway is linked to financial issues surrounding Lyndoch that are now under investigation.

I’ve spent the past nine days digging into exactly why the axe fell so quickly on the CEO last Thursday week (Aug 4) after years of allegations about Ms Power’s management style fell on deaf ears and the Lyndoch board continued to back her to the hilt.

As was reported here, Ms Power was confronted by board chair Sue Cassidy and treasurer Kane Grant and, soon after, left her office armed with two bags of belongings.

As was also reported here, the day before Ms Power left, WorkSafe had received a long list of complaints about Lyndoch lodged by a law firm on behalf of the complainants.

This could have been the final blow.

But no.

I have since learned there is mounting concern about Lyndoch’s financial position, including whether information relied upon to build Lyndoch’s financial picture has been accurate.

These concerns include:

the financial impact of changes to the payment system for home care packages, with Lyndoch no longer having access to a big pot of home care funds ($2.5 million as of March 2021) that sat in its bank account;

whether this big pot of funds for home care packages was used to pay for other services – say, for example, toward the new medical clinic – in the hope it could be later topped up by home care clients (a Ponzi-style approach);

the financial impact of much greater competition in home care packages, which has gouged Lyndoch’s home client list;

the financial impact of having between 50 and 55 empty beds across Lyndoch and May Noonan Hostel – unprecedented;

concerns about the impact of rising interest rates on the $12 million borrowed by Lyndoch to fund its new $22m medical clinic;

concerns about the financial impact of having five apartments for sale in the Waterfront Living complex;

the difficulty of selling these apartments amid concerns about the deteriorating condition of their exteriors;

concerns Lyndoch must legally pay out the owners and/or estate of these apartments after a certain time, regardless of whether the apartment has sold;

concerns raised by residents within Waterfront Living about the location and use of their annual maintenance fee/sinking fund.

That’s a lot to take in, but it all comes down to cash flow: what Lyndoch expected to bring in, what it has to pay out.

And the terrible possibility facing the Lyndoch board is that all is not what it seemed.

Two important things to say here:

First is that residential accommodation bonds are guaranteed by the Federal Government, so – regardless of where this ends – these are protected by law and residents and their families can take comfort they are not at risk of losing their money.

Second is that the resignation of the most recent Chief Financial Officer was clearly yet another warning bell.

In fact four Chief Financial Officers leaving in four years is not just a warning bell, but a big loud hooter that wakes everyone in the night.

If what I am being told now is correct, and I believe it is, then what we have always feared is coming to pass.

We tried to warn the board and they didn’t listen.

Collectively, this house-of-cards scenario was raised more than 18 months ago on this page, by the Terrier, then by former Chief Financial officer Allan Conway, and then by the Keep Lyndoch Living group which formed because of unanswered questions over Lyndoch’s finances.

Mr Conway set the alarm bells off, but nobody listened.

The Keep Lyndoch Living team led by Jim Burke and Prof James Dunbar tried to raise the alarm, but nobody listened.

And The Terrier – 162 stories later – tried to raise the alarm, and nobody with the power to act, listened.

But the board is listening now and so it must, because they are responsible for not asking the hard questions.

It is now incumbent upon the board chair Sue Cassidy and treasurer Kane Grant to step up and tell us what is going on.

They need to assure the community that all is well, that none of what I have raised here is correct, that Lyndoch’s finances are exactly as they should be, and that Ms Power is on annual leave because she decided to take a holiday to Port Douglas.

Now is the time for plain speaking, not bullshite about annual leave.

Now is the time for absolute, rock solid, honest truth.

Carol Altmann – The Terrier

Righto, off we go. Let’s pick up right where we left off, because after all I am like a dog with a bone, and so tonight I am gnawing on the many things that we still need to know about Lyndoch Living – our community owned aged care home.

If any readers hoped that I might be moving on to another issue, look away now, because I am not finished with what has been a three-year investigation into how Lyndoch has changed, who has been involved, why and whether we can soon rest easy.

I am seeing this through – it will remain the focus of The Terrier for now – and I hope you will too.

Ah but hang on, there is one issue we need to address first and that is Covid.

Covidcovidcovidcovid.

Covid, as we know, is still disrupting aged care homes right across Australia with lockdowns, Covid outbreaks, visitation restrictions, and worsening staff shortages, and all of this is having a terrible impact on those who are isolated from their loved ones.

I am sure we all understand this, but Covid is not and cannot be a reason to stop asking the hard questions of Lyndoch that still remain unanswered.

In my view, it is even more of a reason to probe deeply into our publicly owned aged care home, because the local community are the custodians and caretakers of Lyndoch and we want to know that it is operating at the very highest standards of care, trust, accountability and transparency.

This has been the battle for the past three years – longer for those who work there – and it is not over yet.

Let’s begin with the AGM that was held just over a month ago.

At that time, Chair Susan Cassidy said during the livestream that any questions from members would be taken on notice.

Were there any questions from members taken on notice? If so, what were these questions?

What were the answers?

I asked Ms Cassidy this in an email last week and, so far, have not had a reply.

If there were no questions from members, then Lyndoch – a $100 million publicly owned organisation – held its AGM without a SINGLE question being asked.

Not one.

Perhaps I am wrong and Ms Cassidy will be in touch shortly with the list of rigorous questions and answers.

Such as:

Why has Lyndoch’s equity (assets minus liabilities) progressively fallen by a staggering $28 million in just six years?

In 2015, Lyndoch’s net assets were $69 million.

Last year, they had fallen to $41 million.

We will learn more about the Lyndoch figures at the end of this month, when it reports to the charities commission, so I will write more fulsomely on this then.

For now, however, we know a big slice of Lyndoch’s spending goes on staff costs and that it has also borrowed big time to fund its $22m medical clinic.

So, how is staffing? What are the bed numbers and staff ratios?

We see shift shortages being leaked to this page all the time – so why, in this climate, is Lyndoch bleeding so many experienced staff? Has the board asked questions and read the exit interviews?

And is it correct that Lyndoch is poised to hire a bunch of nurses trained overseas in order to fill the gaps?

What about the accreditation of Lyndoch due next month – is it on track to address all of the failings exposed by the aged care commission and pass with flying colours?

My sense is that Covid will see this accreditation delayed, but that doesn’t change the need for reassurance that Lyndoch has addressed ALL of the failings in Warrnambool and at its May Noonan Hostel in Terang.

And how is the $22 million medical clinic shaping up? Is it on budget?

And are all the GPs who are currently contracted with Lyndoch until April intending to stay on or will they follow Dr Phil Hall if, as reported, he re-opens a clinic at the existing Liebig St site?

What if the GPs don’t renew their contracts? How will Lyndoch fill its ginormous, three-level medical centre and not create another Sam’s Warehouse scenario?

Another whole pile of questions also come from the surprise announcement at the AGM that consultant Robert Lane had been hired to sort out how board appointments, and I assume general membership to Lyndoch, will be handled from here.

Mr Lane said there would be an advisory committee, chaired by himself and made up of two current board members (Mr Kane Grant and Ms Lorraine Mielnik), who would assist the board with its decisions on memberships which, to date, have made no sense to anyone.

I will also be learning more about that whole process this week, so stay tuned.

So many questions…I hope you are well rested and ready.

On we go.

[Thanks for reading, and if you would like to buy Jock a juicy bone as a thankyou, you can visit the Tip Jar here: https://tinyurl.com/yckzankb]

Carol Altmann – The Terrier

Below are 31 questions that have been sent today on behalf of members of the community to Lyndoch Living chair Sue Cassidy for next week’s Annual General Meeting (Dec 14).

Only members of Lyndoch Living are legally entitled to ask questions at the meeting, but – as we know – more than 115 people have been denied membership these past 18 months.

We are shut out of any legal obligations.

My argument, however, is Lyndoch has a moral obligation to answer questions posed by the community.

After all, the Warrnambool community raised $20,000 toward the $80,000 purchase price of Lyndoch in the 1950s.

That $20,000 was essential to the Government providing a grant for the remaining $60,000.

Without that $20,000, there would be no Lyndoch Living, simple as that.

The community has since donated tens, if not hundreds, of thousands of dollars toward Lyndoch via donations, raffles, bequests and salary sacrifice.

As far as I’m concerned, the community and Lyndoch residents are the “shareholders” of Lyndoch Living Limited, and shareholders get to ask questions at the AGM about the company, and its management.

So here are 31 questions, distilled from the more than 50 that were offered by you. We shall see if any answers are forthcoming. Thankyou for being a part of this campaign to return Lyndoch to the community it serves.

1. Why is Lyndoch Living not accepting any new members from the community?

2. Who are the current members of Lyndoch Living?

3. What criteria are used to select member applicants?

4. Why are there no copies of previous annual reports on the Lyndoch Living website?

5. Why is Lyndoch Living no longer advertising board vacancies and how are potential board members identified and selected?

6. Why does Lyndoch Living currently have only seven board members and not nine as required by its Constitution?

7. What steps have been taken to reach the accreditation standards required by February 2022 and to also address the 19 areas of non-compliance at May Noonan Hostel?

8. Is the $22 million primary health care centre (PHCC) fully tenanted in preparation for its opening in 2022?

9. What is the contingency plan if the PHCC is not fully tenanted?

10. Has the cost of the $22 million PHCC been impacted by Covid-19 due to increased costs in construction and materials? When is the building expected to achieve profitability?

11. If a new medical clinic opens at the premises of the former Warrnambool Medical Clinic (as reported by local media), how will this affect the capacity of the PHCC to attract new GPs and retain its existing GPs?

12. Will Lyndoch Living release the Business Case underpinning the Board’s decision to approve the construction of the PHCC?

13. What are the underlying assumptions which gave the Board the confidence to go ahead with an investment of $22m and the assurance that this project will result in a viable, sustainable and successful clinic, which poses no risk to Lyndoch’s ongoing financial position – especially its cash flow and solvency – and ability to prioritise its purpose to provide quality care for the region’s elderly citizens?

14. Will the directors of the Warrnambool Medical Clinic by Lyndoch Living be paid once the clinic is operational from the new premises?

15. Does the Lyndoch Living CEO receive performance bonuses as part of the employment contract approved by the board?

16. What is the current debt of Lyndoch and its strategy for repayment?

17. Can the board identify, separately, how much was spent on consultancies in 2020-21 and how much was spent on legal fees? Was this expenditure signed off by the board?

18. Has Lyndoch budgeted in 2021-22 to repair the nurse call system and resident call bell system?

19. How many staff have left Lyndoch Living in the past 18 months and how much has this cost?

20. What is the strategy to retain experienced staff?

21. What feedback (staff surveys, exit interviews etc) has the board received regarding staff satisfaction at Lyndoch Living and what actions, if any, have been taken in response?

22. Does the Board receive monthly reports outlining all compliments and complaints received, and incidents (falls, wound care etc) and sentinel events which have occurred for the previous month, and does this report include action(s) which will be taken in response? What has been acted upon and lessons learned to ensure continuous improvement in quality of care, and ensure proper oversight and accountability of the Board?

23. What measures are being taken to seek feedback from residents and their representatives, and what is being done to address issues raised by residents and their representatives?

24. Has the board reviewed Lyndoch’s business partnerships and sponsorships and how are these performing in terms of quantifiable benefits to Lyndoch?

25. What is the financial position of Waterfront Living? Is it fully sold and covering its costs?

26. Has there been an increase or decrease in the number of Lyndoch Home Care Package clients in the last 12 months? How does Lyndoch set its fee structures for the packages?

27. How much has the sponsorship of the May Racing Carnival Grand National Steeplechase and Lyndoch corporate tent cost since the sponsorship began, which budget line does this money come from, and what have been the quantifiable benefits to Lyndoch?

28. Is Lyndoch Living currently meeting all of its payments to suppliers on time?

29. How are bequests to Lyndoch solicited and is the approach compliant with the Fundraising Institute of Australia, including charity codes?

30. Has the patient/staff member ratio been met? If not, what has been done to remain compliant?

31. How many falls and pressure wounds were recorded in the past 12 months and how does this compare to the previous 12 months?

Carol Altmann – The Terrier

This is Janet Dunn.

Janet is among the 115 people on the roll call of the rejected – those who have been denied membership to Lyndoch Living aged care.

If ever there was a case study of the absurdity of how the current Lyndoch board decides who becomes a member, it’s Janet, because Janet used to be a member.

In fact Janet worked at Lyndoch for 10 years as the Director of Community Services (1992-2001), during which time she developed and managed nine community programs from five offices across southwest Victoria.

Janet was also in charge of coordinating the initial accreditations for both the Lyndoch Nursing Home and Community Services, before her career took her to Melbourne.

Since leaving Lyndoch, Janet has managed several nursing homes –  both private and not-for-profit – and, unlike Lyndoch in recent months, has never failed any standards.

A quick look at Janet’s Linkedin profile reveals she has managed up to 300 staff, has in-depth knowledge of the aged care accreditation and funding systems, has worked on several state committees, including Ministerial Advisory Committees, and holds several post grad qualifications, including an MBA.

Oh my goodness.

Not only should Janet be a member of Lyndoch, she should be urged to nominate for the Lyndoch board at the AGM on 26 October.

The board, which has two vacancies and only one person with any nursing or aged care experience, needs people like Janet.

But while Janet has 30 years experience in aged care management, she is not able to become even a member of Lyndoch.

Why?

What is the criteria?

Did chair Sue Cassidy (Unisexcuts) and members Andrew Paton (WCC director), Kerry Nelson (former MPower CEO), Ron Page (dairy industry), Lorraine Milenik, Prof Rob Wallis and treasurer Kane Grant (Sinclair & Wilson), decide that because The Terrier was urging people to apply, that anyone who did apply was immediately ruled out?

Was that the criteria?

If so, what a wasted opportunity for Lyndoch to re-open its doors to the community, including to some extraordinary talent, like Janet, Marie Bird and Kate Sloan.

I have never met Janet and I only discovered her background after she commented on The Terrier Facebook page, but like the other 114 people, Janet’s application was dismissed without comment.

The board can do this under the Lyndoch Constitution and there is nothing, it seems, us mere mortals can do about it.

But surely it is wrong, so wrong, that a community owned asset can be controlled by a board that has no obligation, or desire, to explain itself.

Given this, I would like to see the whole board put up for re-election on 26 October.

Imagine that: a fresh start.

Lyndoch could then open up itself up to nominations from existing board members AND the general public, just like the “good old days” of three years ago.

It won’t happen, of course.

Why?

Because Lyndoch has shown it’s now fearful of any involvement or examination by the very community it was set up to serve.

How did it come to this?

Carol Altmann – The Terrier

Meet Marie Bird, another highly skilled member of our community who has been locked out of joining Lyndoch Living.

Marie is among the 115 people who have been denied the right to become a simple member – not even a board member – of Lyndoch, our community owned aged care home.

Her application, like that of experienced nurse Kate Sloan who I wrote about last week, was rejected by the board without consideration or comment.

Let me tell you a little about Marie, who has lived in Warrnambool for 24 years.

She is a highly successful businesswoman (The Bird Group), a volunteer, philanthropist, a former member of various boards and committees, and currently the human resources director of her business involving the management of more than 500 staff.

On top of this, Marie has had personal experience in building community links with aged care.

In 1985, Marie set up an adult learning program in Port and South Melbourne that included close contact with the SouthPort Aged Care Community Nursing Home.

“The nursing home had an open door policy towards the community, resulting in some amazing opportunities for its residents,” Marie told me.

Through her work as an Outreach Community Education Officer with Prahran TAFE, Marie introduced a program that allowed the nursing home residents – along with people, who for whatever reason, were housebound – to re-engage in learning.

“The strength of this program, which went on for many years after I left my job, came from the local community’s involvement…which included the SouthPort Aged Care Nursing Home,” Marie says.

“This experience has stayed with me for more than 30 years, so to think Lyndoch Living – who until recent times nurtured this model of operation – has now shut itself off from its community just saddens me no end, hence my desire to see Lyndoch remain as a community based facility.”

In a normal world, Lyndoch would welcome Marie – with all of her skills and all of her business nous – as a member.

But no, Lyndoch doesn’t do normal.

Her application, like all the others, was metaphorically dumped straight into the bin.

The board made this decision.

So why would Lyndoch chair Susan Cassidy, hairdresser and owner of Unisexcuts, reject Marie Bird?

Why did deputy chair Kerry Nelson, the former (now retired) CEO of MPower, think Marie was a bad choice?

And treasurer Kane Grant, who works for Sinclair & Wilson? What was his reasoning?

And retired Deakin University academic Prof Rob Wallis?

And former nurse educator Lorraine Milenik? What were her concerns?

And Ron Page, an operations manager with the Australian Dairy Farmers Corp?

And last, but not least, why would Andrew Paton, the Director of City Growth at Warrnambool City Council, reject the application of one of Warrnambool’s leading businesswomen?

There are no explanations; the board can offer only silence.

The Lyndoch AGM will be held on 26 October and nominations to become a board member close two weeks prior.

There are two vacancies on the board and – personally – I would love to see Marie nominate for one of them, but she can’t, because she is not a member, which is a pre-requisite.

In reality, nobody can nominate for the board, other than those ‘tapped on the shoulder’ by the existing board members.

For a community owned aged care home to behave in this way should be unacceptable.

And yet, it seems, those with the real power to challenge it, accept it.

I wonder what it will take for the charade to end?