Why hospital co-location is a bad idea
The retirement village sector is pushing it as the solution to stranded patient crisis. NSA wants a more serious discussion about providing older Australians the housing they need.

The Retirement Village (RV) industry is promoting RVs as a solution to the burgeoning problem of people with chronic conditions and disabilities having to stay for long periods of time in hospitals.
The industry newsletter, The Weekly Source, reports the NSW Government, with the support of Blacktown City Council, has agreed to have a retirement village added to an aged care home next to Blacktown Hospital.
It says this Sydney model could be expanded to address the housing issues facing older people. It wants more RVs to be co-located with hospitals, even being built over hospital car parks.
Is this a practical suggestion or is it the RV industry jumping on the current crisis to advance its own commercial interests without properly considering the practicalities of the proposal?
Given the paucity of the information and insufficient research into the problem, National Seniors Australia (NSA) doesn’t think it is a good idea.
More research needs to be done. We, and all older Australians need to know who the people are that are being stuck in hospital and why they are finding it so hard to leave.
We question whether retirement villages, even with residential aged care bolted on, are the right type of housing to meet these needs.
The article says those in hospitals with nowhere to go are mainly older people and people on the National Disability Insurance Scheme (NDIS).
We believe most of the people in hospital have conditions that require ongoing substantial care and accommodation designed specifically for that care. This also applies to people with disabilities. Simply building retirement villages collocated with hospitals does not provide the housing that is needed and therefore cannot solve the problem.
What could solve the problem?
There are housing solutions being funded and built, which appear to be far better for their target residents than an RV.
For example, $50 million has been awarded to Southern Cross Care Queensland (SCC) under the Australian Government’s Aged Care Capital Assistance Program (ACCAP) to build a brand-new residential aged care community in Broken Hill.
The project will provide improved access to care close to home, deliver new community facilities, and the ability to deliver modern, safe, and welcoming community spaces for older people.
Southern Cross Care says construction will incorporate community collaboration.
“This investment is about more than bricks and mortar; it’s about dignity, connection, and ensuring older people can remain close to family and community in a place they’ve always called home,” SCC said in a statement.
NSA believes governments should proactively give more consideration to projects like this as it is going to meet the needs of people who are stuck in hospital.
Tasmanian dementia village – first of its kind
In Hobart, a $25 million village designed around the needs for people with dementia is home to nearly 100.
Korongee is made up of small houses and is designed to increase social interaction, independence, and the wellbeing of residents. There’s a café, community centre, salon, wellness centre, and general store.
Gently sloping paths lead to the houses, in which lighting mimics the cycles of the sun. Inside the homes, there are memory boxes for familiar items on each bedroom door, and the toilets are a different colour from the rest of the bathroom.
Residents live in households of eight, which is based on research findings that small household living is both more familiar and more pleasant for people with dementia than traditional large aged-care homes.
NSW palliative care accommodation
It appears governments are already supporting innovative solutions to delivering supportive aged care by co-locating specialist design accommodation that meets residents’ needs.
The new inpatient Supportive and Palliative Care Unit at Westmead Hospital in Western Sydney, where construction is now underway, appears to offer such a model.
The new unit will feature 15 beds with ensuites and provide specialist care in a home-like setting that caters for patients, their families, and carers.
Located on level 5 of the Central Acute Services Building at Westmead Hospital, it features communal and private spaces, a multi-faith room, and outdoor access from every room, to provide a welcoming and supportive environment for patients and their families.
The World Class End of Life Program will deliver new or redeveloped palliative care facilities across the state. In addition to Westmead, locations include Wyong, Nepean, Tamworth, and Orange Hospitals.
The government says the new unit will provide privacy, comfort, and dignity to support people with life-limiting illnesses who have complex symptoms and those in their final stages of life.
Once again, consultation and community input is key. The new unit has been designed in close consultation with health professionals who provide supportive and palliative care, consumers with a lived experience, and Aboriginal, multicultural, and multi-faith representatives.
More expert thought and less commercial PR
So, while we welcome ideas to enable older people to leave hospital for somewhere better, it would be more helpful if those ideas were research-driven, practical, and informed by more than narrow commercial interests.
If we tie up quality land next to hospitals with inappropriately designed retirement villages, that land is gone forever and future generations of ageing Australians and those with disabilities will be denied the best possible accommodation.
Related reading: The Weekly Source, SCCQld, Deparmtent of Health
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