Australian aged care firm accused in class action of charging residents for high teas and classes they couldn’t use
Summary
Residents at more than 50 aged care homes run by Arcare in Australia are suing the company for charging fees for extra services like high teas, exercise classes, and internet, even when many could not use these services. The lawsuit says Arcare included these fees as part of a mandatory package from 2020 to 2026, which may have broken laws about charging residents only for services they can use and agree to.Key Facts
- The class action covers over 50 Arcare aged care facilities across four Australian states.
- Residents were charged a daily "additional services fee" from July 2020 through July 2026.
- Some residents were immobile, unable to swallow, or had cognitive impairments, making them unable to use some charged services.
- Charges included items like high teas, exercise classes, alcohol, Foxtel TV, newspapers, and wireless internet.
- Australian law says aged care fees can only be charged if residents agree and can access the services.
- The lawsuit claims Arcare forced these fees as a non-negotiable condition to enter the facility.
- Some charges were based on how much Arcare thought residents could afford, not the real value of services.
- Arcare has not yet responded formally to the court but says they are committed to quality care.
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