Ross Home, in Dunedin, is closing its 24-bed Lindsay unit, which houses D6 psychogeriatric residents, the highest level of dementia care.
There are currently 98 beds for psychogeriatric care in the Te Whatu Ora Health New Zealand Southern (HNZS) area, spread across four units — three in Dunedin and one in Invercargill.
Concerns have been voiced about how residents and their families will cope with the cut, which comes amid a national shortage of aged-care workers.
For the past six months, Presbyterian Support Otago (PSO) home has struggled to find nurses and carers to work at the Lindsay unit.
PSO chief executive Jo O’Neill said the 16 current residents would need to move from the end of October, and PSO was working with HNZS to find a solution.
The level of care those in the unit needed required specially trained staff, and this was also why the unit was not at full capacity.
"The Lindsay unit is sadly now in a critical status which means we are unable to provide the care required to our most vulnerable elderly," Ms O'Neill said. "
"At the heart of this decision is the wellbeing and dignity of our most vulnerable residents, and the safety and wellbeing of our staff."
PSO was advocating with the Government for solutions to the shortages, she said.
These included pay parity for nurses working in aged care, and immediate residency for trained nurses who wanted to come to New Zealand.
HNZS planning, funding and population/public health executive director Andrew Lesperance said the closure of the unit would be "distressing", but the organisation was working with PSO and families in arranging the next step for residents.
"The most significant issue facing [the] aged residential care sector is the challenge to attract and retain nursing staff," he said.
He pointed to Government measures announced in August aimed at training more nurses and making it easier for those in the industry to come to New Zealand.
"The Government is implementing a wide range of initiatives to address immediate workforce pressures as well as working on longer-term measures," he said.
Alzheimers Society Otago manager Antoinette McLean was concerned about where Lindsay unit residents would go.
"It’s definitely a massive disappointment for the communities of people that are impacted by dementia," she said.
"It’s a very big burden to add to families when they’re in that advanced stage of dementia.
"They really need a lot of care and support."
Dunedin’s Radius Fulton Rest Home facility manager Robyn Bowie said it would be hard to place residents from the Lindsay unit due to the high level of care required - a level beyond what her facility provided.
"It would be extremely difficult, extremely, especially for the families" she said.
Fulton Rest Home had also struggled with staffing, and had eight positions still open after a year.
Ms Bowie said the Government needed to step in to solve the staffing crisis.
Grey Power Otago president Jo Millar said the closure was "absolutely devastating".
Dementia beds were in short supply, but those with the condition were human beings who needed to live somewhere that provided them with quality of life, she said.
Aged Care Association board member Malcolm Hendry said those with psychogeriatric dementia required a high level of staffing because they had behavioural issues and would put themselves or others at risk without close monitoring.
Dementia care was increasingly in demand, he said.
While staffing was an issue, a problem which had not been recognised by the Government was that dementia facilities were not delivered "on tap" and a long-term approach was needed.
"Often an aged-care facility providing that level of care would be several years in the planning."
• Is your family affected? Contact: fiona.ellis@odt.co.nz
