Aged care facilities under pressure as major provider shuts down
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As the population ages, seniors need specialised care that caters to their specific needs.
Yet, the country has struggled with keeping aged care facilities afloat and operational over the years.
In a shocking move, Annecto, a well-known provider with a long history of supporting senior Australians, has announced its closure.
The provider is set to close its doors this July.
The aged care provider has 19 branches across Australia, with facilities in Victoria, New South Wales, Queensland and the Australian Capital Territory.
Annecto’s closure may affect over 4,400 patients.
‘This difficult decision follows careful deliberation and extensive stakeholder consultation which considered the service model shifts in the aged care and disability sectors and the financial challenges facing the organisation,’ Annecto wrote in an official statement.
‘As a result, it was identified that Annecto would be unable to continue providing services in the future.’
Annecto’s closure should be a stark reminder of the said sector’s fragility and the importance of robust support systems for both clients and staff.
‘This decision was not made lightly,’ Annecto Incorporated’s Chairperson, Colleen Furnaletto, shared in an interview.
‘The control of our labour costs combined with a healthy growth in our revenue led Annecto to report a net surplus result of $993,000 for the 2023/24 financial year.’
With over 1,000 employees under their belt, Annecto’s closure could also be a significant blow to the workforce.
The organisation has said it will support staff through the transition, but there’s no doubt this will be a challenging time for many dedicated carers and support workers.
Despite the closure, Annecto wanted to give their clients the services they needed.
Annecto has been working closely with the federal government to ensure a smooth transition for all of its clients to new service providers.
If you’re an Annecto client or have a loved one who is in one of their facilities, here’s what you can expect in the coming weeks:
Annecto’s closure is a wake-up call for all, especially seniors.
It highlighted the challenges the aged care sector has been facing—from funding shortfalls to workforce pressures.
For clients and families, it’s a reminder to stay proactive and informed about care arrangements.
As Australia’s population ages and the demand for disability support grows, the need for stable, well-funded providers has never been greater.
RELATED: 'We're stretched to the limit': Aged care facilities face problems as population ages
Are you or someone you know affected by Annecto’s closure? How are you feeling about the transition, and what support do you need? We would love to hear your thoughts, stories, and aged care advice in the comments below.
Yet, the country has struggled with keeping aged care facilities afloat and operational over the years.
In a shocking move, Annecto, a well-known provider with a long history of supporting senior Australians, has announced its closure.
The provider is set to close its doors this July.
The aged care provider has 19 branches across Australia, with facilities in Victoria, New South Wales, Queensland and the Australian Capital Territory.
Annecto’s closure may affect over 4,400 patients.
‘This difficult decision follows careful deliberation and extensive stakeholder consultation which considered the service model shifts in the aged care and disability sectors and the financial challenges facing the organisation,’ Annecto wrote in an official statement.
‘As a result, it was identified that Annecto would be unable to continue providing services in the future.’
Annecto’s closure should be a stark reminder of the said sector’s fragility and the importance of robust support systems for both clients and staff.
‘This decision was not made lightly,’ Annecto Incorporated’s Chairperson, Colleen Furnaletto, shared in an interview.
‘The control of our labour costs combined with a healthy growth in our revenue led Annecto to report a net surplus result of $993,000 for the 2023/24 financial year.’
With over 1,000 employees under their belt, Annecto’s closure could also be a significant blow to the workforce.
The organisation has said it will support staff through the transition, but there’s no doubt this will be a challenging time for many dedicated carers and support workers.
Despite the closure, Annecto wanted to give their clients the services they needed.
Annecto has been working closely with the federal government to ensure a smooth transition for all of its clients to new service providers.
If you’re an Annecto client or have a loved one who is in one of their facilities, here’s what you can expect in the coming weeks:
- Communication: Annecto will be reaching out to clients and their families to explain the next steps and provide guidance on the transition process.
- Transition support: The government and Annecto will help match clients with new providers that can meet their needs.
- Continuity of care: The aim is to minimise disruption, so your services should continue without major interruptions.
Annecto’s closure is a wake-up call for all, especially seniors.
It highlighted the challenges the aged care sector has been facing—from funding shortfalls to workforce pressures.
For clients and families, it’s a reminder to stay proactive and informed about care arrangements.
As Australia’s population ages and the demand for disability support grows, the need for stable, well-funded providers has never been greater.
RELATED: 'We're stretched to the limit': Aged care facilities face problems as population ages
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