“My board is very committed to ensuring residential care beds remain in the community but we will only do that if it's sustainable,” Ms Rivett said.
“But if you don’t fix the issues within the facility around sustainability then we will be in the same situation in a few years’ time.
“It’s very complicated but Murchison are in this position because they are spending more than the income they received."
Shepparton Villages was one of the few centres spoken to by administrators about taking over the Murchison nursing home.
However, the lack of overall government funding for the aged care industry and the facility's need for extensive upgrades was a major concern for the Shepparton Villages board.
“We would love to take over Murchison but there is quite a substantial amount of money needed just not to cover the debt but also the ongoing sustainability of the facility,” Ms Rivett said.
“They’ve got areas that are over 35 years old and because of their financial situation they have not been able to keep up with the maintenance.
“Look, it's really up to this government but of course we have thought about it."
Ms Rivett said although Murchison’s expenditure was unbalanced, she said they only would have done it because they were really struggling — just like the rest of the aged care industry.
“The whole industry is experiencing hardship because we are not getting enough money from the government to actually cover our operational expenses,” Ms Rivett said.
“If they don’t fix this, we are going to have more aged care providers in trouble and they will have no choice but to close their doors."
The Aged Care Financing Authority reported earlier in the year that 67% of regional aged care providers were making financial losses.
Ms Rivett urged the government to immediately increase funding by at least $18 per resident per day.
“We will see more closures if the government doesn’t put in a package that alleviates the strain on residential care right now,” she said.
“If you take a look at this industry, on average we have $230 to spend a day per patient; however, the Victorian Government pays $300 a day to look after a prisoner.
“That’s when it hits home — it's pure ageism.
“Why isn’t our community up in arms about this?"
