Community-run no more: Lyndoch Living to be absorbed by conglomerate

The Warrnambool aged care facility announced it would merge with Respect Group Limited on June 1, 2024.

Lyndoch has had a catastrophic few years, with poor strategic decisions destroying a once enviable financial position.

It was forced to sell the former May Noonan facility in Terang at a substantial loss in 2023 after failing to find a buyer for the aged care business.

It has also been struggling to sell its brand new medical building adjacent to its Warrnambool nursing home facility, as well as the medical practice housed in the building.

Its 2022-23 financial results revealed a $20 million loss, nearly four times its loss for the previous financial year.

The Standard asked Lyndoch whether it accepted responsibility for the circumstances that led to the merger and irremediable loss of community control.

In a response, Lyndoch blamed "operating challenges", "regulatory changes", "compliance requirements", and "recruiting difficulties", but refused to accept any strategic errors by the board or executive.

Lyndoch board chair Peter O'Brien said the organisation had undertaken a three-year turnaround plan, which had improved its finances.

"However, the reality is that a larger group such as Respect will ensure the sustainable future of the Lyndoch legacy, Dr O'Brien said.

"This was not an easy decision but one we believe is right. Respect has an excellent reputation and very positive feedback was received from other aged care facilities which have joined the Respect group."

Lyndoch formalised the merger in a board vote earlier in May.

From June 1, the Lyndoch board will be dissolved, as will the current executive structure.

Respect managing director and CEO Jason Binder said Warrnambool residents were "welcome to nominate themselves for a position on the Respect Board when a position becomes available".

Acting CEO Jill Davidson will remain in place for the transition only. Respect will appoint a local general manager for the facility.

It is understood the medical building is not part of the merger deal. Lyndoch said negotiations were underway for the building and an announcement would be made once a sale was completed.

Lyndoch had previously guaranteed the medical practice would remain a source of nearby medical care for residents. The Standard asked whether Lyndoch maintained that promise in light of the new management.

"All our valued GPs and GP clinic staff are encouraged to continue their partnership with us as their service, experience, commitment, and contribution is highly valued," a spokesperson said.

In a letter to staff, Dr O'Brien said the "Lyndoch" name and its history would "remain cherished and preserved".

The Standard asked Lyndoch whether it wished to make any statement to the community about a beloved community-founded institution falling definitively out of local hands.

Lyndoch did not offer any apology. Instead it provided a quote from Respect managing director and CEO Mr Binder.

"Overall, we are convinced that Respect has the strength, experience, and expertise to provide Lyndoch Living with the resources needed to thrive, innovate, and continue delivering the exceptional aged care services that the Warrnambool community deserves," Mr Binder said.

Respect is a community-based non-profit with a 100-year history and 25 aged care homes including 12 in regional Victoria. Mr Binder aimed to reassure the community about the acquisition.

"We... understand concerns that residents, clients, and staff of Lyndoch Living may have during a transition like this," Mr Binder said.

"The same dedicated team of professionals who have been providing exceptional care and support at Lyndoch Living will continue to serve residents and clients, ensuring a smooth transition."