Key facts
- A class action lawsuit has been filed against Arcare, an Australian aged care provider.
- The lawsuit alleges residents were charged for services they could not use due to immobility or cognitive impairment.
- Fees for services such as high teas, Foxtel, and exercise classes are included in the allegations.
- The suit claims Arcare charged for services it was already legally obligated to provide.
- It is alleged Arcare engaged in unconscionable conduct by exploiting residents' vulnerable position.
- The class action covers residents at over 50 Arcare facilities across four Australian states between July 2020 and July 2026.
Residents at Arcare, one of Australia's largest aged care providers, have initiated a class action lawsuit alleging the company illegally charged fees for services that residents could not access or benefit from due to immobility, cognitive impairment, or other issues. The suit, filed in federal court, claims that between July 2020 and July 2026, Arcare embedded these charges within a "signature package" offered to residents at over 50 facilities across four states.
The statement of claim asserts that Arcare, a for-profit provider, charged for services such as meals, which are a legal obligation, as well as additional services that residents were unable to utilize. Australian aged care legislation permits fees for additional care only if residents agree, can access and benefit from the services, and have the capacity to use them.
Arcare is accused of unconscionable conduct, exploiting the unequal bargaining position of residents who relied on aged care services due to medical or social needs. The statement alleges residents were informed that the signature packages were non-negotiable and the additional services fee was a mandatory condition for admission.
Specific allegations include charging for high teas, menu choices, and alcoholic beverages to residents on special diets or lacking the capacity to select menus. Residents unable to operate a television or comprehend content, or who were unconscious, were allegedly charged for Foxtel, newspapers, and internet. Non-ambulatory residents confined to bed were reportedly charged for bus outings and exercise classes.
The lawsuit also claims Arcare used residents' financial information to set fees based on affordability rather than the actual value of services. Dianne Strickland, an 82-year-old former resident, is named as the applicant, having allegedly been billed for exercise classes and Wi-Fi despite being unable to participate or use the technology.
Damian Scattini, a partner at Quinn Emanuel Urquhart & Sullivan, stated that Arcare allegedly took advantage of vulnerable residents by charging for services that were either not delivered or were already covered by agreements and legislation. He estimated that approximately 7,500 residents may have been affected during the claim period.
Arcare has not yet responded to the allegations. A spokesperson for Arcare stated that commenting on the legal proceedings would be inappropriate given the matter is before the court, but affirmed the company's commitment to providing high-quality care and valuing feedback.