Australian aged care firm accused in class action of charging residents for high teas and classes they couldn’t use

More than 50 Arcare aged care facilities are alleged to have charged residents for additional services they could not use or for services they were legally obliged to provide, according to a federal court claim. Photograph: Daniel Pockett/Getty Images View image in fullscreen More than 50 Arcare aged care facilities are alleged to have charged residents for additional services they could not use or for services they were legally obliged to provide, according to a federal court claim. Photograph: Daniel Pockett/Getty Images Australian aged care firm accused in class action of charging residents for high teas and classes they couldn’t use Arcare says it’s unable to comment on the federal court case in which it’s alleged it illegally charged fees Get our breaking news email, free app or daily news podcast Residents at one of Australia’s largest aged care providers have launched a class action lawsuit alleging fees for services such as high teas and exercise classes were illegally charged to clients who cannot use them due to immobility and other issues. The suit, filed in the federal court, alleges residents of more than 50 Arcare aged care facilities across four states were charged a daily “additional services fee” by Arcare embedded within a “signature package” between July 2020 and July 2026. This includes fees paid by residents who are immobile, unable to swallow, or cognitively impaired. The statement of claim alleges that Arcare, a for-profit provider, charged these fees for services, such as meals, that it is already legally obliged to provide, but also for additional services residents could not use. According to aged care legislation, providers can only charge fees for additional care and services where a resident agrees to it; is able to access and benefit from the services; and has the capacity to make use of them. It’s alleged Arcare engaged in unconscionable conduct because residents were in an unequal bargaining position, through their reliance on aged care due to medical or social needs. These residents were told the signature packages were non-negotiable, and that the additional services fee was a mandatory condition of admission, the statement of claim alleges. “The signature package included mandatory services that Arcare was obliged to provide … and could not lawfully charge for as additional services,” the statement of claim says. Arcare has yet to file its response to the court. An Arcare spokesperson said as the matter was currently before the court, “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.” The statement of claim alleges bundled fees for high teas, a choice of menu and alcoholic beverages were 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. It is also alleged that 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. Residents “who were non-ambulatory or confined to bed could not participate in bus outings and exercise classes,” the statement of claim says. It is further alleged 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. The lawsuit was filed on behalf of Dianne Strickland, an 82-year-old former resident of Arcare Carnegie in Victoria. According to the statement of claim, Strickland suffers from osteoarthritic pain and reduced mobility, and 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. The class action represents anyone who lived at an Arcare facility in NSW, Victoria, Queensland or the ACT during the six-year period and paid the additional services fee. Damian Scattini, a partner at law firm Quinn Emanuel Urquhart & Sullivan acting for the applicants, said the case alleges Arcare took advantage of vulnerable residents or their families by charging 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,” he said. “That is a systemic failure that caused real financial harm to people who had already placed their trust and wellbeing in Arcare’s hands.” He said it is estimated that during the claim period, about 7,500 residents were affected. “We are determined to hold Arcare to account and to recover what these residents are owed.” Explore more on these topics aged care Older people news Share Reuse this content