Australia's aged care sector is under scrutiny once again, this time over allegations of profiteering at the expense of vulnerable residents. At the centre of a federal court class action lawsuit is Arcare, one of the country's largest aged care providers, accused of charging thousands of dollars in unnecessary fees to those who cannot use them.
The lawsuit, launched on behalf of more than 50 Arcare facilities across four Australian states, claims that residents were charged an "additional services fee" between July 2020 and July 2026 as part of a mandatory "signature package". However, the statement of claim asserts that these fees were levied for services that Arcare was already obliged to provide, including meals, accommodation, and basic care.
Examples cited in the lawsuit include charges for high teas, exercise classes, and Foxtel packages for residents with dietary restrictions or mobility issues. It also alleges that non-ambulatory residents were billed for bus outings and that those who lacked the capacity to use a television or internet were charged for these services.
A key allegation is that Arcare engaged in unconscionable conduct by exploiting its position of power over vulnerable residents who rely on aged care due to medical or social needs. The lawsuit claims residents were told that the "signature packages" and additional fees were non-negotiable conditions for admission, which is not supported by Australian law.
The case was initiated by Dianne Strickland, an 82-year-old former Arcare resident who suffers from osteoarthritic pain and reduced mobility. Ms Strickland was allegedly charged for exercise classes and bus outings she could not participate in, as well as daily WiFi fees despite not owning a smartphone or computer.
Arcare has yet to respond formally to the lawsuit, with a spokesperson stating that it would be inappropriate to comment on ongoing legal proceedings. However, the organisation maintains its commitment to providing high-quality care for residents.