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Canning Lodge: What Happened After the City of Canning Sought a Private Operator

The City of Canning’s proposed private takeover of Canning Lodge did not proceed. Negotiations failed, Council decided to close the service, and a June 2023 report said residents had relocated.
From TheFinanceBase Team3 min to read
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The City of Canning’s plan to put Canning Lodge under private management did not go ahead. After negotiations with a preferred operator failed, Council decided in March 2023 to close the Willetton aged-care service. A local report published in June 2023 said all 29 remaining residents had moved to other providers.

What the City proposed in 2022

Canning Lodge was a council-operated residential aged-care facility in Willetton. PerthNow reported in April 2022 that it had 42 beds, 30 residents at the time and also provided short-term respite care. PerthNow’s April 2022 report

The City’s expression-of-interest listing sought an approved residential aged-care provider to purchase the aged-care business and then lease the council-owned, 42-bed building. The City said it wanted ongoing high-quality care and accommodation for residents. The listing also invited interest in the future use and operation of Caprice Place Independent Living Units, Everglades Day Centre and the Home and Community Care Building; Herald Avenue Senior Citizens Centre was excluded. City of Canning expression-of-interest listing

Why the private-operator plan fell through

According to a statement by City chief executive Michael Littleton reported by Your Local Examiner, the City began negotiations with a preferred proponent in October 2022. That proponent withdrew in January 2023. The City’s stated priority while considering its options was continued quality care for residents. Your Local Examiner’s report

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PerthNow reported in April 2022 that City officials put the Lodge’s annual operating loss at between $600,000 and $1 million. That is a figure attributed to officials in the report, not an independently verified audited result. PerthNow’s report on the proposal

The Weekly Source reported that Council decided in March 2023 to close the home after it could not find a buyer. Its account attributed the decision to several pressures identified by Mayor Patrick Hall: difficulty filling beds, more people remaining at home, the risks of high-care operations, problems recruiting and retaining experienced clinical staff, and changing regulatory requirements. Hall was quoted as saying, “The inherent risk associated with running a high-care facility of this type has been a key concern of this Council for some years.” The Weekly Source’s closure report

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What happened to residents and staff

Your Local Examiner reported on 29 June 2023 that all 29 residents had relocated to alternative providers. It also reported that one employee was redeployed within the City, 30 staff received redundancies and one resigned. Your Local Examiner’s June 2023 update

There is a difference between that resident count and an earlier figure: The Weekly Source reported in April 2023 that the City was confident 46 residents would find new homes. The available reports do not explain the discrepancy. The later June report says 29 residents had relocated, so the figures should be read as dated, separately attributed reports rather than combined into one count. The Weekly Source, April 2023 Your Local Examiner, June 2023

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Good-practice guidance published in October 2024 by ACCPA and OPAN uses Canning Lodge as a closure case study. It describes ongoing communication with residents and relatives, counselling support from the City, engagement with other local homes to explore transfers, and efforts to negotiate residents’ Refundable Accommodation Deposits and Daily Accommodation Payments where possible. ACCPA–OPAN good-practice guidelines

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What the outcome means for the original proposal

The 2022 proposal was a possible transfer of the aged-care business and a lease of the building to a private provider; it was not a completed sale or handover. Negotiations with the preferred proponent ended when it withdrew, and Council subsequently chose closure rather than continuing the service under a new operator. The later reporting documents resident-transition support, but does not establish that a private operator took over Canning Lodge.

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