More action needed to address concerns of personal care home operators

Personal care homes in Newfoundland and Labrador continue to struggle, especially in rural areas of the province, and government is doing little to ensure the long-term stability of these homes, says Opposition Leader Yvonne Jones. The issue was raised earlier today in the House of Assembly.

An independent review commissioned by the Personal Care Home Owners Association of Newfoundland and Labrador shows that the subsidy provided by government to personal care homes is not keeping pace with other legislative requirements implemented by government. As a result, many homes are being faced with the painful decision of being forced to close their doors.

“This association has a number of concerns with how they are being treated by this government and the lack of support being shown to their industry,” said Ms. Jones. “While the costs of operating homes are being driven up by new legislative requirements, the subsidy provided by the provincial government is not keeping pace with these increases. This is creating financial uncertainty for some of the smaller homes, especially in rural regions of our province. In last year’s budget government provided a cap on home care rates in the province so that seniors paid significantly less for home care services. However, they did not provide the same treatment for those who wanted or needed to go into a personal care home.

“In addition, larger personal care homes with over 50 beds can access financing from the Canadian Mortgage and Housing Corporation (CMHC) to complete upgrades, but smaller homes do not qualify for this funding and struggle to keep their homes modern. The association has asked the provincial government to offer mortgage loan insurance for smaller homes in an effort to receive similar rates to that offered by CMHC, but no action has been taken by the province.

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