NAO finds ‘strong indications’ of shortcomings in private elderly care standards

An audit focusing on the Zejtun, Mellieha, Roseville and Casa Leone Homes showed that a discrepancy between the demand and supply of government-funded elderly care, had forced the Department for the Elderly into private public partnerships (PPPs) to ‘buy beds’.

But the National Audit Office said it had found room to negotiate more favourable terms and ensure a higher degree of contractual compliance by the respective home operators.

“These contractual arrangements were undertaken in an environment where various regulatory and policy limitations exist, such as those relating to care within the community. These circumstances precluded more accurate projections of future needs, the development of new services, and attracting more private sector investment in such a critical social dimension,” the NAO said in an executive summary of its report in the provision of residential care for the elderly, tabled in the House of Representatives.

The government was said to have been forced to enter into direct negotiations with private homes due to urgent demand pressures.

“Although catered for in the Public Procurement Regulations, such circumstances stifle the potential benefits of competitive tendering. Competitiveness-related issues become more exacerbated as a major supplier has been entrusted with the management and operation of over three-quarters of the beds pertaining to the PPPs and ‘buying of beds’ scheme.”   

The NAO said the state incurred higher annual interest rates on PPP financing for construction of homes in Zejun and Mellieha in 2003 and 2007, money which could have been sourced from government stocks’ borrowing.

“Opportunities to secure more favourable operational rates were similarly not always fully exploited, as implied by the wide-ranging charges incurred at the four sampled homes,” the NAO said,

The NAO also said that there were “strong indications” that the number of carers and nurses provided by home operators fall short of contractual obligations.