Aged care provider Bupa hit with $6 million in fines after false promises made to residents

Aged care provider Bupa has been slammed with $6 million in penalties after Australia's consumer watchdog found it was accepting payments for services it was not providing to residents.
The Australian Competition and Consumer Commission (ACCC) today said an investigation found a total of 95 services were either not provided or only partially provided to residents at 20 homes.
The residents had paid for a package of extra services – which included amenities such as specialised gardens, fully equipped physiotherapy rooms or talking book libraries – only to discover the services were either not there completely or only partially as promised.

The misleading of consumers is alleged to have occurred from April 15, 2013 to June 2018.
Bupa has already started paying compensation to affected residents and estimates it will pay about $18.3 million total.
Australia's Federal Court requires the aged care provider to have finished compensating all affected residents within 12 months.

ACCC Chair Rod Sims said the impact of this decision by Bupa is likely that residents have not experienced the quality of life they paid for.
"Bupa's failure to provide services for which it accepted payment is extremely disappointing and likely lessened the quality of life of the aged care residents in Bupa's care," ACCC Chair Rod Sims said.
"The offer of these services may have played a part in residents and their families choosing a particular Bupa facility."

Bupa operates 78 aged care facilities around Australia, caring for approximately 6,700 residents. A full list of affected facilities can be found at the bottom of this article.
Other promised extras included separate external buildings for leisure activities, hot breakfasts, rooms specifically to assist those living with dementia and individually controlled heating and cooling.
"These vulnerable residents and their families may not have been aware that these extra services were not being provided, although they were being paid for," said Mr Sims.
"The ACCC prioritises conduct that impacts vulnerable and disadvantaged consumers, who can be disproportionately affected by breaches of the Australian Consumer Law."

Bupa began compensating residents in July 2018, and will backpay "thousands" of affected residents dating back to November 2011.
Residents and their families or executors of deceased estates are encouraged to review the information about Bupa's compensation program on Bupa's website.
In a statement, Bupa said it voluntarily reported the issue to the ACCC and around 85 per cent of residents impacted have already been reimbursed or are in the final process of receiving payments.
Suzanne Dvorak, Managing Director Bupa Villages and Aged Care Australia, apologised for the error and the impact on residents and their families.
"Having a family member enter aged care is often a stressful time, and we are deeply sorry for our mistake, which impacted some of our residents and their loved ones," Ms Dvorak said.
"As soon as we discovered our error, we voluntarily reported the issue to the ACCC and other regulators, and began the work to ensure we compensated residents fairly and quickly.
"All of our current residents, and most former residents, who were impacted have been compensated with interest."
Full list of 20 Bupa Aged Care Facilities affected:
Bankstown, NSW
Banora Point, NSW
Berry, NSW
Dural, NSW
Mosman, NSW
Queens Park, NSW
Sutherland, NSW
Tamworth, NSW
Roseville, NSW
Willoughby, NSW
Berwick, VIC
Bonbeach, VIC
Caulfield, VIC
Coburg, VIC
Croydon, VIC
Donvale, VIC
Greensborough, VIC
Glenvale, QLD
New Farm, QLD
South Hobart, TAS