Two weeks ago, advisory firm Ansell Strategic warned their COVID-19 modelling showed aged care operators would pay out $9 billion in departing RADs over the next nine months or $37 million a day with insolvencies starting in mid-May.
Now the defaults have commenced with the Department of Health paying out for pre-COVID Berrington Aged Care after the WA operator was declared insolvent with at least one outstanding RAD to be paid out.
Berrington had gone into voluntary administration in July 2019 with its two homes in Subiaco and Como sold to WA providers Bethanie in January this year.
While the scale of the default is unknown, the report by administrators KPMG from 13 March 2020 states that the operator held $124 million in RADs in t…
Read the full article at: https://www.theweeklysource.com.au/department-of-health-steps-in-after-berrington-aged-care-defaults-on-its-rads-how-many-more-providers-will-need-the-government-to-step-in-this-year/
