Guiding Principles for the Transfer of the State Nursing Homes to the Non Government Sector
NSW Health has adopted the following principles to guide the transfer of state nursing homes to the non government sector:
a) Communications with affected residents, their families and carers, staff, unions and communities will be undertaken throughout the tender and transfer process.
b) Expressions of Interest and Detailed Proposals from the non-government sector are to be contestable and assessed on the basis of the operator's record in providing quality aged care in accordance with Federal and State legislative requirements, their capacity to meet any special care requirements of the current or intended residents, the value of the land and assets and the market value of the aged care places.
c) Where a facility requires redevelopment in order to meet the Australian Government's aged care building certification standards, proponents will be required to provide an indication of their intention to rebuild in their Expression of Interest. Shortlisted proponents will be required to provide an outline of proposed capital projects in their detailed proposals.
d) The cost and conduct of any redevelopment of a State Nursing Home are the responsibility of the successful non-government proponent and its governing body.
e) Where detailed proposals received from non government proponents are unsatisfactory and cannot be accepted, it is in the NSW Government's economic interest to continue the operation of state nursing home(s) until market conditions improve.
f) It is NSW Health's top priority to ensure these aged care services and places stay in the local area.
g) Approval by the Australian Government Department of Health and Ageing (DOHA) is required before the transfer or reallocation of state nursing home aged care places to another site. The NSW Department of Health will make recommendations to the DOHA regarding the future of each facility's aged care places in the context of the Australian Government's aged care planning guidelines, with regard to current and future needs for low and high care places, the quality of capital infrastructure, its proximity to other health services, and the health needs of the local community.
h) It is expected that aged care services to existing residents are to be maintained by the new aged care service provider after the transfer in accordance with Australian Government aged care accreditation standards and the requirements of the Aged Care Act. Service disruptions during the transfer process are to be minimised.
i) Where a state nursing home operates aged care places identified for the care of residents with special care requirements, these aged care places must continue to be operated by the new non-government aged care provider.
j) Where aged care places are to be transferred to another site, the first priority in planning for the transfer will be to ensure that disruption to existing residents' aged care service is minimised and that their residential aged care needs continue to be met in a new setting.
k) Staff will be offered a range of options including a transfer to employment with the potential new operators of the aged care facilities or redeployment within NSW Health where this is viable and appropriate. This means that their entitlements will be protected as part of the 1997 State Government Nursing Home Framework Agreement. This Agreement continues to apply specifically and exclusively for the purpose of the State Owned Nursing Home Project as announced by the Minister for Health.
l) The State nursing home aged care places currently receiving the adjusted-subsidy will receive the full subsidy upon their transfer to the non-government sector in accordance with Australian Government aged care funding policy from 1 July 2007.
m) For each facility transferring to the non-government sector, an agreement will be entered into in relation to the following:
- the provision of funding for the maintenance of award entitlements for staff transferring to the non-government sector under the State Government Nursing Homes Framework Agreement
- The services to be provided to residents with special care requirements as specified by the NSW Department of Health and the level of funding contributions towards the cost of their care in consultation with DOHA (for nominated facilities only)
This web page is managed and authorised by Media & Communications of the NSW Department of Health. Last updated: 5 March, 2009

