Island Health Statement on Wexford Creek residential care facility

October 4, 2016

Island Health received notification from the Good Samaritan Society on April 1, 2016 regarding a significant change in staffing and a potential change in ownership of Wexford Creek, a residential care facility located in Nanaimo that Good Samaritan Society has owned and operated since 2008. Island Health was unaware of GSS’ intention to terminate staff or sell the facility prior to receiving the notification.

Island Health’s first priority is ensuring that the quality of care for residents at Wexford Creek is maintained. We do and will continue to monitor the facility to ensure the change in ownership and any changes in staffing is being done in an orderly fashion and has no negative impacts on residents' care.

As of August 23, 2016, the new owner/operator of Wexford Creek is Park Place Seniors Living Inc. As of October 1, 2016, Park Place Seniors has contracted with the company SimpeQ for the delivery of staffing services, effective October 1. The new owner attempted to negotiate a new collective agreement with the HEU but was unsuccessful.  As a result, PPSL has contracted the delivery of services to a third party.

Island Health is committed to providing our seniors and others who require 24-hour care with high-quality residential care services. Service levels and funding for publicly-funded residential care services at Wexford Creek are set in a contract that was negotiated between Island Health and Good Samaritan Society.

It is also important to note that the service agreement between Good Samaritan Society and Island Health was the result of an open, competitive process and Island Health accepted Good Samaritan’s proposal based on the strength of its submission, including financial details, and the proven track record the society has in providing high quality residential care. Good Samaritan bid on and signed a contract with Island Health to deliver residential care services.

Wexford’s reported financial difficulties are based on their capital financing decisions including the cost and length of their mortgage and a high interest rate that is locked in for 30 years. Wages and benefit packages for staff at Wexford Creek are significantly higher than other affiliate residential care services providers that opened in 2008.

In 2014, Island Health conducted a review of financial documents provided by Good Samaritan Society, and we recommended options for cost savings. Island Health has been encouraged by the improvement seen in the organization’s financial position since that time.  Good Samaritan Society has reported a profit to Island Health for fiscal 2014/15 and in 2015/16. Wexford’s current interim funding for 110 complex care beds is $8,587,612 annually.

There is a due diligence process with transferring a service agreement to a new operator and Island Health has and will continue to ensure this this process is carried out.

Last updated: October 4, 2016