Company owned by Adelaide husband and wife doctor team prevented from operating Commonwealth nursing homes

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18 July 2008

The Australian Government has taken action to prevent Bresant Pty Ltd operating aged care homes.

The company is owned by a South Australian husband and wife doctor team. Bresant’s directors and shareholders are Dr Jagdish Saraf and Dr (Mrs) Madhu Saraf and their company operated Brighton Aged Care nursing home until March this year.

On July 14, the Department of Health and Ageing confirmed the revocation of Bresant Pty Ltd's approval to provide aged care under section 10-3 of the Aged Care Act 1997 on the grounds that it had ceased to be suitable for approval.

The basis for the decision was that Bresant Pty Ltd had a history of significant and repeated non-compliance with its obligations under the Act, resulting in serious risk to the health, safety or well-being of residents.

Another issue of concern related to the failure by Bresant’s to report to the Coroner the death of a 71 year-old resident, who died in July 2007.

The Department of Health and Ageing revoked Bresant approved provider status on March 20. The original decision was upheld, following the company’s application for review, on July 14.

It is the first revocation of approved provider status to occur under the new Government. The previous revocation of approved provider status occurred on August 23, 2007.

The Australian Government is concerned that doctors who effectively own and operate a nursing home can sign the death and cremation certificates of residents, despite an obvious conflict of interest.

It has also written to State and Territory attorneys-general seeking their cooperation to close the loophole on cremation and death certificates.

Minister for Ageing, Mrs Justine Elliot said: “This has been a very sad episode and once again, I extend my condolences and sympathies to the family.

“The thousands of hard working and dedicated staff in aged care will welcome the decision by the Department of Health and Ageing to revoke Bresant’s approved provider status.

“In fact, it was a staff member who brought the matter to the attention of the South Australian police,” Mrs Elliot said.

There are 286 nursing homes in South Australia. Over the next four years (2008-2009 to 2011-2012), the Australian Government will invest $3.1 billion in nursing homes in SA.

Details: Patrick Muhlen-Schulte on (02) 6277 7280 or 0403 141 080 300