Nursing home backtracks 'zero COVID' claim after 13 cases at Melbourne centre
Nursing home operator Estia Health has been forced to backtrack an investor update that claimed none of its residents had contracted coronavirus after 13 tested positive at one of its facilities in Melbourne’s western suburbs.
The ASX-listed aged care provider requested a trading halt before the sharemarket opened on Monday after initially announcing there had been zero COVID-19 infections among its residents.
However, a subsequent release to the market about two hours later said the company had received advice that 13 residents at its Ardeer home had tested positive for COVID-19.
E Estia Health has reported 13 cases of COVID-19 at its Ardeer residential facility in Melbourne. Credit:John Veage
No explanation was given for the discrepancy and Estia did not say when the infections were discovered, how they are believed to have occurred, or the condition of the residents who have been infected.
Estia reintroduced visitor restrictions at 19 Melbourne metropolitan homes on June 29 as cases worsened in the state. The firm earlier said two staff working across three of its homes had tested positive to COVID-19, though neither employee worked while showing symptoms of the illness and control precautions were put in place.
The company did not say where those staff members were based and what facilities they worked at.
Estia said it activated its COVID-19 positive test response plan and is working with the Victorian Department of Health and Human Services Public Health Unit and the Commonwealth Department of Health to manage and monitor the situation at Ardeer.
Both Estia and the Victorian Department of Health and Human Services have been contacted for comment.
Ardeer is in the Local Government Area of Brimbank, which was considered a virus hotspot in late June before Melbourne suburbs re-entered full lockdown.
On its website Estia says its Ardeer home offers “comfort and safety in an attractive natural environment that borders on Ardeer Reserve and the Kororoit Creek”.
Agedcareguide.com.au says Ardeer is a 55-bed 'medium' facility that was refurbished this year.
Shares in the $390 million company have resumed trading on the ASX and are down 4 per cent at $1.44.
Estia has lost 40 per cent of its share price so far in 2020 and slumped to a record low of 90.5 cents in March during the COVID-19 rout of the market.
The firm's initial market update on Monday said it expects to cop a non-cash impairment of up to $148 million in its full-year results as it writes off goodwill on past purchases.
Estia said COVID-19 pandemic had exacerbated existing uncertainty around future financing of the aged care industry.
“The company expects to report a non-cash impairment charge, primarily on goodwill arising from historical acquisitions,” Estia said.
The non-cash charge is estimated to be between $124 million and $148 million, subject to audit.
Estia’s occupancy in mature homes have improved gradually since May 2020 to 92.7 per cent at June 30, representing 5,946 operational beds.
In February the company reported a 32 per cent drop in first-half profit to $14.3 million thanks to a federal funding decline and occupancy rates it said had been hurt by poor press from the Aged Care royal commission.
The company expects to release its FY20 results on August 18.