The coronavirus reveals the dangers of profit in homes for the elderly
A long-term care home in Pickering, Orchard Villa Ont on May 2020, Orchard Villa, made the news for a terrible Coronavirus breakout, two months into the lockdown in Ontario 77 deaths were recorded in the 233 bed home. An investigative report by Canada’s military opened up the terrifying state of lack of staff and abandonment. Relatives faulted the ownership for focusing on undue gains, declaring that the Coronavirus just unveiled, in a devastating manner the effect of placing gains first in the general administration of homes for the elderly.
A private equity company, Southbridge Capital bought the Orchard Villa had been bought in 2015 which placed it on Canada’s growing stock of monetized homes for the elderly; bought by a financial company as an investment effect. This occurrence falls in line with the monetization trend in the global economy, in which finance I in control of the operations of capitalism, putting investor gains first above environmental, social, and other goals. The desperate hunt for gains in running homes for the elderly by private ownership comes with devastating aftermath for inhabitants and staff.
Homes for the elderly involve the government's sponsored long-term care, pay for retirement living and nursing homes. Canada's citizenry is over-the-hill with a forecast of 240,000 fresh spaces by 2046; it is referred to as the gray wave. This is an eventuality that has come to stay according to industry professionals. Still, with LTCs over-filled waiting lists and government funding, capitalists are on the rush to get a piece of the action due to assured steady income. For twenty years, financial operators have been merging ownership of Canadian homes for the elderly; these operators are private equity companies, Real Estate Investment Trusts, and institutional investors.
The first homes for the elderly REIT inaugurated 12 homes in 1997; it was accompanied by a merger delirium and it gave rise to financial companies like Extendicare, Verve, Sienna, Revera, Chartwell, Amica, and some others. Financial companies were in control of at least 28% of homes for the elderly in Canada by 2020 with the incorporation of 38% of retirement homes and 17% of LTCs.