Audit of Nursing Home Beds Finds Concerning Weaknesses - AG
For release September 16 – Nova Scotia’s plan to add or replace thousands of nursing home beds reveals concerning weaknesses, the Auditor General says in a new report.
Since 2021, the Government has announced 5,700 new beds will be built by 2032 in dozens of facilities across Nova Scotia.
Our audit found the Department selected sites that matched demand projections but once projects were underway, it failed to properly monitor the nursing homes under construction.
Audit testing found 4,000 beds were not competitively procured as required by the Public Procurement Act, as they were offered first to existing nursing home owners, Auditor General Kim Adair says.
The Province has made a $8.68-billion commitment through 25-year service agreements to long-term care service providers throughout Nova Scotia.
“Our Office recognizes the Department's position in supporting existing service providers in the community. However, the key components used to rationalize its decision for right-of-first-refusal could just as easily be addressed while following the current Procurement Act,” Adair says.
“With billions at stake, Nova Scotians deserve confidence that their tax dollars are delivering the best value.”
While contracts signed with service providers show evidence of value for money, there is room for improvement: the Department should review contracts between providers and third parties and define its change order process.
The Province created the new Seniors and Long-term Care Department in 2021 to lead the delivery of this major initiative, which will impact seniors care for decades.
In addition to not following provincial procurement rules for more than 4,000 replacement beds, the new audit uncovered a lack of evidence to support the decision to renovate or build over a thousand nursing home beds before the Department was created.
The audit also examined the approvals and construction phases for nursing homes. Although the new Department developed an 11-step facility development approval process, concerning weaknesses were found.
And once approved, there’s a failure to properly monitor nursing home projects under construction and a failure to accurately report the progress to the public on its website.
The Auditor General makes 10 recommendations in her new report, including that all new and replacement beds selected for construction be awarded following Public Procurement Act requirements.
The Department has agreed to them all and has committed to carrying out almost half by the end of this month.
Last fall, the Province had a waitlist with more than 1,800 Nova Scotians looking for a nursing home bed. With such urgent need, the plan to create thousands more beds is an important one, says Adair.
“The plan is still in the early stages. Through implementation of the recommendations, we hope to improve the planning, procurement, management, and reporting on the construction of nursing home beds for years to come.”