However, the project is under threat due to building costs having soared since the grant was approved, leaving Cobram Regional Care seeking additional grant funding to cover the difference.
The not-for-profit organisation was approved for the extra places, as well as a $2.7 million grant in 2020, as part of the Commonwealth Department of Health’s Aged Care Approvals Round.
Cobram Regional Care chief executive and director of nursing Tracey Gemmill said it received the initial capital grant funding, with a government expectation that the organisation contributes $1 million itself.
“At the time the application was made (2019), this was achievable; however, sadly, current estimates indicate that due to the COVID pandemic, building costs have increased by between 30 per cent and 50 per cent above when the building costs were first estimated,” she said.
“We are currently looking at our options for additional grant funding to meet the ‘gap’ between the original anticipated cost of the development and the actual costs we are now being faced with as a result of the COVID pandemic.
“This will ultimately determine whether the project is able to go ahead as planned.”
Ms Gemmill explained “exorbitant” building costs associated with COVID-19 had also impacted the initial May 2023 deadline and Cobram Regional Care may need to seek an extension, but the organisation would be unsure of exact completion timing until it goes to tender in the coming months.
Moira Shire Mayor Libro Mustica called the development a fantastic idea given Cobram’s ageing population.
“Every bed provided is a huge assistance to the elderly ... every bed that’s provided in our region is a huge boost to their confidence, because there’s availability of care in your community,” he said.
“Every bed that’s provided, I’m a big supporter.”
The organisation has maintained a near-100 per cent occupancy rate, with a waiting list of over 20 people, even after continued expansions from the original 48 beds available prior to 2018.
Currently, demand outstrips supply, with older people who urgently need residential aged care forced to accept a place in Shepparton or Yarrawonga.
The extra bed licences were specifically granted for those experiencing social and financial disadvantage, including those who cannot afford a large refundable accommodation deposit; the places also cater to those living with dementia and those from rural and regional locations.
They also cater for older people from diverse cultural or linguistic backgrounds, with six beds “earmarked” for residents of Italian descent.
Previous organisational growth has allowed Cobram Regional Care to provide home care in Berrigan and Moira Shires, covering over 130 clients under the Commonwealth Home Support and Home Care Package programs.
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