RPAs struggle to stay afloat

(Montreal) More than 500 retirement homes (RPA) in Quebec have closed their doors over the past five years.


Landlords and researchers cite the burden of stricter government regulations, rising costs and an aging population of renters requiring increasingly complex health care services as factors.

For small residences, the issue of sprinklers is particularly problematic.

Quebec required sprinklers to be installed in all seniors’ residences with at least 10 units after a fire killed 32 residents of a retirement home in Île-Verte, in the Bas-Saint-Laurent region, in 2014.

While there are programs to help offset the costs, residences must pay up front. Jacques Marchildon, co-owner of Villa Marie-Ange in Saint-Adelphe, Mauricie, says he found the cheapest deal at $150,000 — money he doesn’t have and can’t borrow.

Mr. Marchildon says the sprinklers were the nail in the coffin for Villa Marie-Ange. In the coming months, the two-storey building will be put up for sale and the people currently living there will be moved elsewhere.

“No bank will lend money, for any reason, to senior living communities with fewer than 50 units,” he said. His has 14.

Marc Fortin, president and CEO of the Regroupement québécois des résidences pour aînés (RQRA), estimates that some 1,100 residences have closed their doors over the last decade.

He attributes 600 of those closures to the requirement to install sprinklers. He says the cost of sprinklers is high and contractors are hard to find, making the problem “unmanageable.”

The regulation, imposed 10 years ago by a previous provincial government, is not good, he said, adding that it does not apply to other places that house vulnerable or elderly people, including small hospitals.

“But it applies to retirement homes because there was a tragedy on Île-Verte. Politicians want to look good,” laments Mr. Fortin.

PHOTO ALAIN ROBERGE, LA PRESSE ARCHIVES

Thirty-two residents of a retirement home in Île-Verte, in the Bas-Saint-Laurent region, lost their lives in a fire in 2014.

The current government has acknowledged that sprinkler rules have created difficulties for RPAs, particularly smaller ones. On Thursday, it announced it was extending the deadline for installing sprinklers from the end of this year to December 2027.

Mr. Fortin is pleased with this decision because it will prevent the closure of a large number of the 363 private residences for seniors that do not have automatic sprinklers.

“An unsustainable model”

However, this is not the only challenge facing residences. And it is not only the small ones that are closing.

On August 8, the owners of La Sittelle, a residence housing 80 seniors in Trois-Rivières, announced their closure, citing difficulties in hiring staff, the increase in the number of homeless people which affects safety and quality of life, and increasing certification requirements.

“This regulatory burden has become a major obstacle, making the daily management of the residence increasingly complex,” the establishment said in a statement.

According to a report published in May by the Interuniversity Research Center for Organizational Analysis (CIRANO), regulations relating to retirement homes have multiplied in recent years, which, combined with rising costs, has made the current model “unsustainable.”

Some of these requirements include installing locks, surveillance cameras and devices to regulate the temperature of bath water, which are costly and often inconvenient for seniors, says Fortin.

The researchers also noted that private residences are increasingly being asked to provide a much higher level of care to seniors who would normally be eligible for a place in a long-term care centre (CHSLD), but cannot find one.

Fortin notes that retirement homes — which normally offer services such as meal schedules, activities and support from health-care workers — are in some cases being asked to provide care to people who need help walking, bathing, taking their pills or staying clean, including many people with dementia or Alzheimer’s disease.

While the province does provide some subsidies for more specialized care for residents, Fortin says the government often reimburses less than the cost of the services, forcing owners to foot the bill.

They try to underpay, not pay much or tell us, “Do it for free because we don’t have a budget, so deal with it.”

Marc Fortin, CEO of RQRA

Mr Marchildon believes the increase in the number of people with complex needs is part of a broader societal shift that has seen people staying at home longer and delaying moving into a care home.

In his view, the growing proportion of people with complex needs makes it more difficult for a small rural residence like his to offer activities that would attract younger, more active seniors.

The CIRANO report highlights that, despite a 23% decrease in the number of RPAs in the province between 2015 and 2023, the number of available places has increased slightly. This is explained by the fact that the residences that are closing their doors are largely small establishments with fewer rooms, often located outside major cities.

According to Mr. Fortin, the increase in the number of rooms in large residences does not change the fact that closing a small house in a rural area is a great loss for a senior, who must deal with the stress of being away from friends and family.

It is also a loss for the towns, as many older people are involved in the community and keep the local church alive.

“We lose a bit of the soul of the village when we are forced to move the elderly away,” he said.


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