Published on 03 November 2025
The Gummun Place Hostel Advisory Committee has endorsed a proposed new operating model for the Merriwa facility, following a feasibility review undertaken by aged care consultants Pride Aged Living. The review found that Council could best meet its requirements by transitioning Gummun Place Hostel from a residential aged care service to a licensed assisted boarding house, supported by home care package-based aged care services delivered by an external provider. Deputy Mayor Cr Pat Ryan, Chair of the Advisory Committee, said the proposal provides a sustainable pathway for the future of the facility while maintaining locally based accommodation and care for residents. “The current residential aged care model is not financially sustainable,” Cr Ryan said. “The assisted boarding house model offers a more viable path forward that allows residents to remain part of the Merriwa community while continuing to access the care they need.” Financial modelling undertaken as part of the feasibility review indicates that the service could achieve a breakeven result when occupied by approximately 10 to 11 residents, with potential for improvement as the model is refined and through discussions with suitable providers. An assisted boarding house is a simpler and less compliance-focused operating model than a residential aged care service. It is expected to reduce operating costs, with safeguards in place to prevent ongoing losses. Under the proposed model, Council would retain ownership of the facility and lease it to an experienced aged care or housing provider responsible for day-to-day operations and service delivery. The feasibility review remains commercial in confidence to protect information that could compromise the upcoming Expression of Interest (EOI) process. “The feasibility study contains sensitive financial and operational details that are essential to the EOI process,” Cr Ryan said. “Keeping it confidential ensures Council can attract the most qualified providers to operate Gummun Place.” Under the preferred model, residents would enter occupancy agreements directly with the operator and contribute towards accommodation and meal costs. Additional services such as personal care, allied health, domestic assistance, home maintenance, transport and meal preparation could be funded through residents’ Home Care Packages. The transition process is expected to take around six months, depening on the availability of suitable alternative accommodation for residents who are not eligible for home care packages. Council has undertaken extensive consultation to date and continues to engage with the Department of Health, Disability and Ageing and the Aged Care Quality and Safety Commission regarding the transition process. Council will continue to meet its obligations to residents while it remains the approved provider. Cr Ryan said the Advisory Committee is confident the proposed model represents a positive and achievable direction for the facility. “This model reduces risk, lowers costs and supports residents to remain in Merriwa with access to quality care,” he said. “Our focus now is on identifying the right partner to manage the facility and deliver services under this approach.” The Advisory Committee endorsed the proposed operating model at its meeting on 7 October 2025. The agenda from Council's last Ordinary Council Meeting can be found here: upperhunter.nsw.gov.au/Council/Council-and-Committee-Meetings/Council-and-Committee-Meetings/OC-27-October-2025