The state of Burgenland submitted a statement of facts to the prosecutor’s office in Eisenstadt regarding the bankruptcy case of the nursing home “Rosengarten” in Bad Sauerbrunn (Mattersburg district). “The economic situation raises many questions,” State Counselor for Social Affairs Leonhard Schneemann (SPÖ) said on Thursday. He demanded a full explanation. It is noteworthy that the operating company DGW distributed a profit of 2.3 million euros in October.
Schneemann said that from the state’s perspective, there is a possibility that individuals will “enrich themselves at the expense of residents, staff and ultimately taxpayers.” The operating company had reported a profit last year, but has now suddenly gone bankrupt with a loss of 230,000 euros. This affects 51 residents, 26 employees and 38 creditors.
“From my point of view, it is in no way understandable that a facility would file for bankruptcy overnight – without any prior indication – if the state and the residents bear the costs through pensions and maintenance allowances,” Schneemann emphasized. After all, the country also covers its operating expenses with daily exchange rates. Payment was always made on time and in full. “The other 44 elderly people’s homes and nursing homes in Burgenland all manage to get by on this money,” the State Social Council said.
The nursing home’s 51 residents are planned to be transferred to other facilities in the area. According to Schneemann, new accommodation has already been found for 25 residents, 13 were able to find accommodation in Neudörfl (Mattersburg district) and they are still looking for 13 more people. Negotiations are also ongoing with sponsor organizations that can recruit employees.
Schneemann thinks the Burgenland model of care is validated by the case. This underscores the importance of non-profit status. “There is absolutely no profit to be made from maintenance and support,” he said. The state even tried to buy old people’s homes as part of care restructuring but failed due to price. Schneemann explained that the property owners wanted around 7.6 million euros, but the state estimated the value at only 3.5 million. Additionally, $2.8 million has already been paid for the property at daily rates.
In its broadcast on Thursday, FPÖ Burgenland appealed for urgent aid to workers and patients. Mattersburg district party chairman Marco Szodl said that while clarification is still needed, it should not come at the expense of staff and residents. ÖVP had previously submitted a parliamentary question to the Council of State for Social Affairs.
The bankruptcy case against the company that operates the nursing home was filed in the Eisenstadt district court last Monday. According to media reports, the company justified its bankruptcy with increased energy and personnel costs. It was initially unclear whether it was actually possible to renovate and maintain the old people’s home as the operator wanted.