Independently Owned, Locally Grown, Community Loved
Photo by Zach Houtenville
By Zach Houtenville
After months of speculation and growing community debate, Proserpine Nursing Home (PNH) association members are preparing to make a decision that could reshape the facility’s future.
Built nearly four decades ago, the Proserpine Nursing home started out as cane paddock donated from a local farmer, filling a community gap with 30 beds.
Over time, it's turned into a haven for the communities' elderly, expanding into the 103 beds it is today.
Now, that community legacy rests with association members, who will vote on Monday 7th September, on whether the home and its assets should be transferred to national not-for-profit aged-care provider Respect Group Limited.
Headquartered in Tasmania, Respect Group currently operates 47 community aged-care homes, alongside retirement living and home-care services, across regional Australia.
While Respect Group’s board declined to comment on the matter, a representative on behalf of Proserpine Nursing Home said it had approached three large not-for-profit providers before selecting Respect, citing its experience in regional communities, clinical governance, quality of care and alignment with the home’s values as drawing points.
Under the proposal, Respect would retain existing staff and invest at least $10 million in the Proserpine facility within three years, with its total commitment potentially reaching up to $20 million.
The PNH representative said the arrangement would be a transfer between two not-for-profit organisations rather than a commercial sale, allowing the home’s resources to continue supporting aged care.
“This type of transfer is not unusual to PNH,” the representative said.
“Transfers of assets between not-for-profit organisations to continue a shared purpose occur regularly across Australia and across many sectors- including the aged care sector.”
However, association member and accountant Allana Van Niekerk, whose mother-in-law moved into the home back in November, has questioned whether the proposed transfer represents fair value for a facility built and supported by the Proserpine community.
PNH’s 2025 financial statements recorded $32.6 million in total assets, including $20.6 million in cash and $11.9 million in property, plant and equipment. Its liabilities included $14.7 million recorded as ‘other financial liabilities’, which Allana said largely represented refundable deposits owed to residents.
Her concern is that Respect would receive the home’s land, buildings, cash and liabilities without paying a purchase price. She has also raised questions about Respect’s management of refundable accommodation deposits across its expanding network. Their 2025 financial statements recorded $264.3 million in cash and $568 million in residential funds held.
Allana fears PNH’s cash could be pooled with Respect’s broader finances and used for permitted purposes, including developments or acquisitions elsewhere, rather than remaining within the Proserpine facility, and won’t be available to meet refundable accommodation deposit obligations.
“We’re giving away assets that are community-owned,” she said, alleging:
“The biggest issue is that historically, Respect Group, by their financials, have spent 60 per cent of the refundable accommodation deposits held by residents.”
“It won’t necessarily go back into our nursing home.
“There are two sides to this, and the board is choosing not to share that with the community.”
When asked about its due diligence, the nursing home’s representative said the board had reviewed Respect’s financial position and was satisfied it could meet its obligations to residents.
“Respect has one of the strongest balance sheets among large aged care providers in Australia and comfortably meets the Australian Government’s prudential requirements for the repayment of refundable accommodation deposits,” said the representative.
“Regardless of this, residents’ refundable accommodation deposits are guaranteed by the Australian Government, providing an additional safeguard regardless of the provider’s financial position.”
Beyond the financial debate, Allana has raised concerns about the process put in place for the upcoming vote, questioning whether the process follows the association’s constitution.
According to the association’s constitutions, page 8 section 27(1), a general meeting vote must be called by the board’s secretary, and according to page 10 section 32(5), all proxy votes must be sent to the board’s secretary.
However, emails sent to Allana show that the current interim general manager at the nursing home was the one to call the general meeting, and that he requested all proxy votes be sent to him personally.
“I emailed the board asking them to correct and have not had a response,” said Allana.
Allana’s concerns extend to availability of information, with member requests for financial records, meeting minutes and access to the association’s membership list reportedly unanswered ahead of the vote.
The nursing home’s representative pointed to PNH’s latest audited financial statements, which are publicly available on its website. The 2025–26 audit was completed in August, but the results are not expected to reach the board until September.
“We understand concerns about the FY26 results not being available before the 7th September vote, however, this decision was not made for solely financial reasons,” said the nursing home’s representative.
“The Board’s decision is about the increasingly complex regulatory risk, and governance, workforce and capital requirements of operating a stand-alone aged care provider.”
Figures provided by the nursing home show the number of small residential aged-care providers across Australia declined by 32 per cent between 2017 and 2025, while the number of large providers rose by 37 per cent. They mentioned similar transfers have happened at Sarina Community Nursing Home, Resthaven on Quarry, Nanyima Mirani Nursing Home and Glenella Care.
For those opposing the transfer, the issue is about more than dollars and figures. It is about keeping a much-loved facility, built and supported by generations of locals, in the hands of the community it serves.
“In our experience generally, what happens when a community loses control of an important institution like an aged-care home is it eventually results in worse services for the community,” Australian Worker’s Union Northern District Secretary Jim Wilson told the ABC.
With arguments raised on both sides, the decision will ultimately rest with association members when they cast their votes on Monday.
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