Warrnambool's Lyndoch Living to sell new primary health care centre

A "multi-factoral" approach to "turning the tide on the financial position" of the aged care provider is required, Lyndoch Living said in a statement.

The announcement comes seven months after the organisation denied speculation the centre, which houses a medical clinic, would be sold.

Acting chief executive officer Jill Davidson said focusing on service provision rather than ownership of buildings was part of the financial turnaround strategy.

"The viability of aged care facilities, particularly in rural areas is very challenging and requires a strong commitment to clinical services and a reduction of non-clinical activity, including the management of assets," Ms Davidson said.

"We will continue to take up options to occupy a space in the primary care building for the purpose of delivering services where required.

"Our primary focus must be quality care to our residents and clients."

Board chair Sue Cassidy said the primary care centre would be sold via expressions of interest through JJL Australia.

"The development of the primary health care building has been an exceptional contribution to the primary care and business sector in Warrnambool and beyond," Ms Cassidy said.

"The opportunities offered to the wider business and health sector community are now available for sale via expressions of interest with JLL Australia and will close Thursday, November 23 at 2pm."

Ms Cassidy said the organisation's executive and staff should be congratulated for the work which had been done to improve Lyndoch's financial position.

The announcement comes after Lyndoch Living closed Terang's May Noonan aged care facility earlier this year.

Ms Cassidy said at the time it had been a "really difficult" decision to shut the centre.

"We've looked at everything we could possibly do...but we've made the decision that we can no longer keep May Noonan open," Ms Cassidy said.

"It is pretty devastating and it has been a massive decision for the board to go this way."

She said low, and declining, occupancy had combined with chronic staffing difficulties to make operating the facility unsustainable.

Lyndoch's 2022 annual report revealed a $5.7 million deficit and steeply declining net assets, while the organisation faced rising interest payments on the $11 million loan it took out to build its $25 million primary care centre in Warrnambool.

The Standard reported on February 2, 2023, that Lyndoch was considering selling the newly built primary care building as it sought to focus resources on its "core business", the provision of aged care.

"There's a lot of rumours in the community, and they have to be addressed because otherwise they just get bigger," Ms Davidson said at the time. "There's no fire sale. We are trying to re-purpose the investment into the point of care."

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