Carol Altmann – The Terrier

And so it comes to this – the Lyndoch Living board has kicked the community to the kerb with a mass rejection of membership applications.

The official letters began arriving in the post today.

Among those rejected was Kate Sloan, (pictured).

Kate has worked in the emergency department of South West Health Care for 20 years, including 13 years as nurse unit manager.

She has been a registered nurse since 1986 and an endorsed nurse practitioner for 14 years.

Kate also has post-graduate qualifications in emergency nursing, health management and forensic nursing.

She has hospital certifications in critical care and midwifery.

Kate wrote all of this on her Lyndoch membership application form, even though there was no box for such detail, to show the board that she might have something to offer as a member.

But Kate was considered not good enough.

She was not considered worthy of becoming a mere member, let alone ever considering becoming a board member.

The decision to reject Kate was made by Chair Sue Cassidy (hairdresser), Kerry Nelson (former CEO Mpower), Andrew Paton (WCC director City Growth), Ron Page (dairy industry), Kane Grant (Sinclair & Wilson accountant), Lorraine Mielnik (retired  nursing lecturer) and retired academic Prof Rob Wallis*.

No reason has to be given, and the board provided none.

Kate is not alone.

From what is unfolding so far, all 115 applications from the community membership drive last month have been rejected.

The Lyndoch board has – so far – not found one single person from the applicants that they consider worthy of joining Lyndoch.

Not one.

In my view, this board no longer represents the community.

From its actions over the past 12 months and particularly now, it has proven it has disconnected completely from the community that created and nurtured Lyndoch Living for more than 60 years and which still owns it.

That is disgraceful.

Instead of standing up and speaking up, the board is a part of Lyndoch’s determination to avoid community scrutiny.

It is an accomplice – not an ally – as it watches the community lose control of a community owned asset.

Again, in my view, this is disgraceful.

The community is no longer needed or wanted on a rocket ship that has its nose turned toward the ground and is losing senior nursing staff at a time when it needs them most.

Perhaps, as some have been speculating, it’s all a path to Lyndoch being privatised.

I used to think that was outlandish and would never happen. Now, I’m not so sure.

Because, until now, I believed that the community would never LET it happen.

I have come to realise the community has no – official – power to stop it.

The board has complete control over who it lets in, and who it keeps out, and you are being kept out.

And so come the next Annual General Meeting at Lyndoch on 26 October, there will be no invitation for you to join in.

I doubt you will even be told the date, which is why I am publishing it here.

There will be no questions from anyone outside of Lyndoch itself.

Anyone who hopes to nominate for the board, can’t, because you have to be a member first.

The AGM will be an entirely closed shop and, if you are lucky, you might get to watch it on Youtube a week later.

Despite the odds, I am not giving up on Lyndoch without a fight.

Because Lyndoch doesn’t belong to Sue, Andrew Prof Rob, Kane or Kerry. It doesn’t belong to the Lyndoch CEO or executive, and it sure as #$@$ doesn’t – yet – belong to BUPA.

It belongs to Warrnambool.

As a journalist, I can write about this as The Terrier.

But as a member of the community who has a strong connection to Lyndoch, like so many of us do, I will be once again writing to MPs Roma Britnell, Dan Tehan and  Minister Luke Donnellan and asking for their intervention.

The community has done all it can to fight for our aged care home: we need help.

In the meantime, if you have had your application rejected and are willing to be mentioned here, please get in touch.

* The chair and board was contacted earlier today for comment. It had not responded by deadline.

Carol Altmann – The Terrier

Lyndoch Living, having recorded a fifth deficit in six years, is digging into residential bonds to fund its $100m masterplan.

And a warning – figures ahead, lots of figures – as we dive again into the swirling financials of Lyndoch Living.

One, two, three…jump!

When you bob up you will see that figures lodged by Lyndoch Living last week show an even greater loss – a $2.4 million deficit – than was reported at last October’s AGM (the one we were not invited to Zoom, but could watch later on YouTube).

The annual information statement lodged last week with the Australian Charities and Not for Profit Commission reveals a $600,000 increase on the $1.88 million loss reported at the AGM and in Lyndoch’s full financial statements to the commission.

The $2.4 m is the loss recorded by Lyndoch without taking into account the profit from the Warrnambool Medical Clinic, which it bought in 2019. Either way, it is the fifth deficit for Lyndoch in six years.

This doesn’t seem to trouble the board.

As reported here last November, Lyndoch’s overall asset base (assets minus its liabilities) also continues to slide and is now $47.6m down from $69m in 2015.

This doesn’t seem to trouble the board either.

There is a lot to digest in the 60-page financial statement, so I am going to break it into bite-sized chunks tonight and in follow-up pieces.

First, the report shows us that Lyndoch has funded at least part of its $13 million Swinton Wing expansion by doing something it has never done before, which is borrow money.

It has visited the bank and also borrowed a big chunk out of the $26 million it holds in residential bonds paid by residents.

From this $26 million in bonds, Lyndoch has thus far extracted $10,944,323.

By law, as long as an aged care provider can cover its residential bond refunds for the next 12 months, it can dig into the rest and repay it down the track.

If an aged care home defaults, the Federal Govt will pick up the tab, so it’s kind of a taxpayer-backed Ponzi scheme that relies on an aged care home doing the right thing.

It’s also cheap, interest-free money, but concerns about how these bonds are being used is one reason (among many) that the whole bond scheme is now under review as part of the Royal Commission into Aged Care.

The loans, of course, will need to be repaid at some point, including fairly substantial interest on the bank loans, despite low interest rates.

In 2018, Lyndoch paid zero interest on any loans.

In 2019, it paid $62,420.

In 2020, it paid $372,669.

As of 7 July 2020, Lyndoch signed up for another loan from the NAB for $3,386,000 which is due to be repaid by June 2022.

This was needed to fund the “redevelopment of a residential building” which, I assume, was the blowout in cost of the Swinton Wing.

That project, where residents are not allowed to hang any pictures on the walls despite paying huge bonds which helped fund it, grew from a budget of $10 million to $13 million.

Relying big on borrowed money is new territory for Lyndoch, which once upon a time used to spend only what it had, what the government gave it, and what it raised from the public.

But Lyndoch, as we know, is now a long way from those comfortable shores as it sails into a $100 million masterplan under the captaincy of a CEO and board that firmly believes you must spend money to make it.

This is why in 2019 Lyndoch bought the Warrnambool Medical Clinic, Health Spot and May Noonan Hostel, in Terang, for around $3.3 million.

(Lyndoch also recently hired JB Were – who will charge fees accordingly – to look after its complicated investment portfolio. We are not in Kansas anymore, Toto.)

The Warrnambool Medical Clinic last year turned over $3.8m in revenue, but had $2.8m in expenses.

According to the financials, the clinic returned a final profit of $539,249 to Lyndoch Living in 2020 which is not to be sneezed at… but $372,000 of this will be spent this year paying out the original owners of the clinic as the final instalment of the sale contract. Achoo!

The WMC was pretty much break even for last year.

As for this year, well this is when things get interesting, because Lyndoch has the wire fencing up and around its now-vacant Tomlinson Wing (built in 1991 with help from a generous donation from the Tomlinson family), all set for demolition to make way for a new, two-storey Lyndoch medical clinic to replace the existing WMC.

This clinic will have acute care, dentistry, an x-ray machine, up to 20 GPs, allied health, education rooms, a cafe, a chemist and no doubt wonderful indoor plants and a red-and-white colour scheme.

The cost? An estimated $24 million. Where is that money coming from?

The bigger question, however, is will Lyndoch Living thrive or dive under this grand expansion and multi-million dollar spend up? Time will tell.

More soon.

Carol Altmann – The Terrier

As the year comes to a close, I wish I could do more for those who contact me about Lyndoch Living.

Whenever I write about Lyndoch aged care, I get a stream of messages from readers, most of whom thank me for just listening, even if I can’t help.

People care about Lyndoch and its residents, including the staff who have to go to extraordinary lengths just to get a message to me, for fear of being “caught” talking to The Terrier, but also the families of residents, and friends of residents.

I find so many of these messages heartbreaking and I feel powerless, because I can’t fix it.

All I can do is tell you – the wider community – what I have learnt and what I have investigated and hope that you, like me, won’t look away.

Like this message from a reader about the new $13 million Swinton Wing extension:

“..residents from (Tomlinson) have now been moved to the second floor of the new “dementia building” (my words). This means that all ambulant dementia residents are now “trapped” upstairs with no free access to an outside area where they can feel the breeze or sun on their face, walk on a “return” path through an enclosed garden area, and see birds hopping around.

“They now have no chickens to care for and secured outside areas for unsupervised activities are now nonexistent. ….. the new building is very impressive and state of the art, but soulless and clinical.

“Whoever thought that this was an improvement to the quality of residents’ lives has no understanding of the ageing and their needs. My alarm bells are going off and I feel this needs further investigation. Please.”

Please.

This is the new Lyndoch, I have learned, where pictures are not allowed on the new walls of the new rooms and the new TV that comes with the new room is the one a resident MUST use, even if they don’t know how to work the freakin’ new remote control.

And then there are the messages about “the rash”.

I have had so many messages about a “rash” that has been coming and going through the Audrey Prider Centre at Lyndoch for six months and I can – at last – write about it because the Australian Nursing and Midwifery Federation (ANMF) has taken up the issue on behalf of their members – the nursing staff on the front line.

In a letter to Lyndoch last week, the ANMF has asked the question up front: is this rash scabies? And if it is, what is being done about it, and what has been done to support residents and staff?

The union has asked for a response by tomorrow (Dec 4).

If this rash is not scabies – I have since heard that it ISN’T – then what is it?

It is enough to have staff and family of some residents demanding more answers.

Another worry that has filtered through to The Terrier these past weeks is the mobile “black spots” within Lyndoch that means families calling after-hours to check on sick loved ones are finding the phones are either not answered (because nursing staff are in a black spot) or the call drops out.

All of those millions spent on expanding Lyndoch – and adding an IT specialist to the executive team – and the phone system is unreliable.

Perhaps instead of worrying about awards and nominations and getting its name up in fairy lights, Lyndoch needs to make sure it responds to these concerns – and I am only able to share a few of them here.

Speaking of lights, the big, new, illuminated, illegal corporate logo on Swinton Wing will be approved retrospectively by the WCC, but will not be lit up.

The lighting breaks the planning laws, but it took neighbours to tell them that.

Given the WCC head of planning is on the Lyndoch board, we can only assume that he had no idea this sign was going ahead.

I really hope Lyndoch receives a refund on the LED.

And I really hope that those who have concerns and fears and worries about Lyndoch will keep speaking up and find the strength to stand up, to light up, knowing that we – the community – has their back.

On we go.

[This is my last post for 2020. Thankyou so much to all of the terriers who have helped The Terrier to keep going in more ways than one. You are the voices behind this voice and I couldn’t do any of it without you.]

Carol Altmann – The Terrier

Well blow me down if the Cassign team was not back at Lyndoch Living today installing a huge, illuminated sign on the front of the new Swinton Wing.

Just last night, as you know, I wrote about the perceived conflict of interest between Cassign and Lyndoch chair Sue Cassidy, who is married to the owner of Cassign, David Cassidy.

I wonder if Lyndoch put this latest slice of non-essential corporate branding out to tender, because this sign is not a little A-frame at risk of blowing over in the Warrnambool wind – it needed a cherry picker and three guys to install.

We will most likely never know, because Lyndoch no longer tells the community such things.

But what I can confirm is, as flagged last night, the Lyndoch at-home gardening team is being dismissed as of late January because they are costing Lyndoch money.

These are the hard-working men and women who visit people’s homes to mow lawns, whipper snip, and edge garden beds with a skilful eye well beyond my own.

They are now dispensable to Lyndoch, even if they were indispensable to those who used the service.

The home gardening team costs Lyndoch around $100,000 a year, and so they are out.

Be gone ye faithful gardeners, Lyndoch has snazzy signs to install via a cherry picker!

I was thinking we could offer some suggestions as to where Lyndoch could whipper-snip its costs to save the gardeners, and we could start with the number of executives.

As I wrote last night, a brand new executive position has just been filled and, as it turns out, another two will be advertised in January:

– Operations Manager: Organisational Development

– Organisational Development Consultant

Good grief.

An organisational consultant to assist the organisational manager who reports to another manager, who reports to the CEO…

At last count, Lyndoch had around 60 administrative staff.

The good people of Seymour know all about top-heavy administration, which unfolded at their hospital some years ago, and was one of several upsets challenged by the local community that led to a complete upheaval in 2012.

The CEO of Lyndoch was the CEO of Seymour Health at the time.

Lyndoch also sponsors the Grand Annual Steeplechase horse race, which was ostensibly in the hope that such advertising would help sell the waterfront apartments.

It didn’t work.

The last of these apartments was flogged off recently in a fire sale for $100,000 less than the listed price in 2014.

Lyndoch also hosts a corporate marquee for three days at the May Racing Carnival – at a cost of around $40,000 –  and would have done so again this year had it not been for Covid-19.

And yet the gardening staff are being cut.

We see what is happening here. We all see it. And we are not looking away.

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Carol Altmann – The Terrier

Oh, the tangled web. Warrnambool can be a very, very small place when it comes to who knows who, and who ends up where, how, and why.

Which is why I asked Lyndoch Living this week how it manages the potential conflicts of interest around Lyndoch board member and now Lyndoch chair, Sue Cassidy.

I asked this because Ms Cassidy, who joined the Lyndoch board in 2017, is married to David Cassidy who operates Cassign: a very successful signage company that has operated in Warrnambool since 1983.

Cassign has done a lot of signage for Lyndoch Living these past few years, including the Lyndoch bus and the new signage at the Warrnambool Medical Clinic that, last year, was bought by Lyndoch Living for $1.3 million.

Cassign also provided the installation work for the swish flat-screen TV that now sits at the drive-through entrance to Lyndoch Living.

Most recently, as I understand it, Cassign replaced old signage outside the new Swinton Wing with a sparkling new sign that, among other things, directs people to the “Lyndoch Medical Hub”.

I know more than I probably need to know about Cassign, because I have raised the issue of potential conflict of interest before, when Ms Cassidy was a Warrnambool City Councillor and voted on issues to do with racehorse training on our local beaches.

At that time, I questioned how Ms Cassidy could be part of any such discussions when Cassign sponsored horse races in Warrnambool.

In response, Mr Cassidy sent me a series of long and passionate emails setting out why – in essence – my stories were all a crock and there was no potential conflict of interest and his wife was a modern woman who ran her own business, while he ran his.

I saw it differently – and I still do. Which brings me back to Lyndoch Living.

This week I  asked Lyndoch Living (and Ms Cassidy) whether Lyndoch put out a tender for its signage work and, given Cassign has done at least some of this work to date, how it managed any perceived conflicts of interest.

The answer, as always, was no answer.

We shall have to make up our own minds.

In the meantime, you may recall that a couple of weeks ago I wrote a piece about Lyndoch looking for yet another senior executive to add to its ballooning executive team which has grown from 37 in 2017 to almost 60 in 2019.

This newly created position – Director of Research, Enterprise and Education – was worth more than $100k a year, was advertised only internally and for only around 10 days, leading me to speculate that someone was already lined up for the job.

That someone, I took a punt, was Julie Bertram, a retired director from South-West TAFE, who this year has been filling a maternity leave position in the Lyndoch executive.

Lo and behold, guess who today was announced as the winning candidate for the job? Ms Bertram.

While Ms Bertram is no doubt perfect for the role, the bigger question is why Lyndoch’s executive team seems to have an ever-increasing number of new staff in roles that, between them, must cost a fortune.

For what purpose and for what return to Lyndoch and its residents?

This latest position comes on the heels of Lyndoch recording a $1.9 million deficit – its fifth deficit in five years.

It also comes amid unconfirmed reports that Lyndoch’s at-home gardening staff will soon be dismissed because they are costing Lyndoch money.

And it comes as we start the countdown to Lyndoch’s full financial figures for 2020 being released in January through the Australian Charities and Not for Profit Commission.

I wonder if the food bill for Lyndoch will have increased from the paltry average of $13 per resident, per day, in 2019?

The silence from Lyndoch is always deafening when it comes to my questions, but rest assured that I will keep asking.

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