Montefiore board challenged
MAJOR communal donor Millie Phillips has called for the Montefiore Board to step down because she claims she can save up to $35 million a year.
MAJOR communal donor Millie Phillips has called for the Montefiore Board to step down because she claims she can save up to $35 million a year.
Phillips, who is backed by communal heavyweight Harry Triguboff, has operated nursing homes for 27 years, and said she is prepared to take over the aged-care facility to remove the alleged waste and give the savings to the Jewish Communal Appeal (JCA), which will then use the money to reduce the cost of Jewish school fees by more than 50 per cent.
“I’m furious at the waste and I want to see transparency,” Phillips said.
“I’m determined to get the truth to the public because the value of nursing homes is only going up.
“I want my legacy to be through Jewish education, and I want some of our organisations to change the way they work so they can produce an annual profit and we can work together as a community to reduce the cost of Jewish education by more than 50 per cent.”
According to Phillips, of the $53,281,000 that was collected in fees by Montefiore in the last financial year, $50,700,000 was spent on salaries.
She said that equates to 97 cents of every dollar in fees being paid to staff, which she claims is well above the industry benchmark of between 60 and 70 cents in every dollar.
“I call for the board to stand down. If it does not, a public meeting will be called.”
A partner at Grant Thornton Australia, one of the few charted accounting firms in Australia that specialise in aged care, backed Phillips’ claim. “It would be very unusual for there to be an aged-care facility that is so far above the benchmark at 97 cents in the dollar,” the partner said.
However, Montefiore president David Freeman said that Phillip’s figures are irrelevant. “The industry average benchmark for salaries and wages is generally accepted as being calculated as a proportion of overall expenses, not income as suggested by Millie Phillips.”
Freeman said the industry average is between 70-75 per cent and the Montefiore’s salaries represent 75.2 per cent of expenses.
“There is no question that Montefiore’s wages and other expenses are higher than the industry average,” he said.
“In addition to the additional costs associated with specific religious and cultural factors, such as security, rabbinical services, kosher food, etc, we provide a far higher standard of accommodation, care and support services than typical commercial operators.”
Freeman, whose opinion is backed by another partner at Grant Thornton, said the board has no plans to step down or reduce staffing levels because it would reduce the level of care. He added: “As a result of the board’s competence and efforts the home is in a financially excellent position and capable of responding to the growing number of aged in our community who will require its services.”
Major communal donor Triguboff said something needs to change.
“I agree that it isn’t managed the way that we [Phillips and myself] would run it, but the people are not complaining so I’m not sure what we can do?” he said.
“I have the greatest respect and admiration for Millie Phillips, and she is right because it is not being run commercially, but I’m not sure how to fix it.”
JCA president Peter Philippsohn said he supports good governance, transparency and the efficient use and effective management of communal resources. “While JCA does not run the constituent – constituents are run by their duly elected boards and paid staff – JCA supports any opportunity for a constituent to call on experts to improve operating efficiency,” Philippsohn said.
“Monte offers an outstanding level of care, which is recognised as being in the forefront of residential aged care in Australia. However, every organisation can and should always strive to do better.”
JOSHUA LEVI
Montefiore president David Freeman
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