Residents claim they have been charged for services they could not use, or which were already covered by the Aged Care Act.
One of Australia’s largest aged care providers – Arcare – is the subject of a class action brought by residents who claim they have been charged for services they could not use or which were supposed to be part of an inclusive fee.
Quinn Emanuel Urquhart & Sullivan have begun the class action in the Federal Court on behalf of resident Dianne Strickland and other former Arcare residents who were charged an Additional Services Fee (or Arcare‘s “Signature Package” fee) between 3 July 2020 to 2 July 2026, and who did not receive the additional services they were charged, or were charged for additional services that Arcare was already obliged to provide under the Aged Care Act 1997 (Cth) and the residents’ agreements.
Damian Scattini, a partner with the law firm, told HSD in a statement that Arcare took advantage of their clients’ vulnerability.
“They rely entirely on the providers who care for them to deal with them honestly and in accordance with the law,” he said.
“This class action alleges that Arcare took advantage of that vulnerability. It charged residents – and their families – for services that were either never delivered or that Arcare was already obliged to provide under their agreements and under Australian aged-care legislation.
“That is not an oversight. That is a systemic failure that caused real financial harm to people who had already placed their trust and well-being in Arcare’s hands.
“We are determined to hold Arcare to account and to recover what these residents are owed. We also want to send a clear message to the aged care sector more broadly: the law protects elderly Australians, and those who seek to profit by circumventing it will be pursued.”
In a statement provided to the Guardian, Arcare said it would “not be appropriate to comment on the allegations or the legal proceedings”.
“Arcare remains committed to providing high-quality care and services that support each resident’s choice, independence and dignity,” the spokesperson said.
“We value feedback from our residents and their families.”
That statement of claim filed with the Federal Court showed that Ms Strickland, an 82-year-old former resident of Arcare Carnegie in Victoria, who suffered from osteoarthritic pain and reduced mobility, was physically unable to participate in or benefit from the exercise classes and bus outings she was being charged for.
“It is alleged she had no knowledge of how to use wireless internet technology and, despite not owning a smartphone, tablet, or computer, was continually billed a daily rate for in-room wifi,” said the Guardian.
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Other allegations mentioned in the statement of claim included bundled fees for high teas, a choice of menu and alcoholic beverages charged to residents who were on prescribed dietary regimes, receiving enteral nutrition or pureed or modified texture diets, or who lacked capacity to make menu selections; some residents who lacked the capacity to operate a television or comprehend audio-visual content, or who were unconscious, were charged for Foxtel, newspapers and wireless internet.
It was further alleged that Arcare used financial information about residents to set fees, charging individual residents a price that reflected what Arcare assessed the resident could afford rather than the true value of the services provided.
Residents or their families who believe they may be group members are encouraged to register their interest in the class action at https://www.arcareclassaction.com/register