Numbers have since increased slightly, but remain "substantially down", and permanent staff turnover is almost 30%.
PSO board chairman Tim Mepham said it was the "most difficult year" he had experienced in his 14 years on the board of the organisation, which last month announced the closure of its 24-bed psychogeriatric unit at Dunedin’s Ross Home due to a lack of staff.
PSO’s annual 2022 report detailed the problems faced by the organisation, which comes amid a national shortage of aged-care workers.
In July last year staff across the organisation’s nine Enliven aged-care homes numbered 682, but by the end of June this year the figure was 443.
The exodus of staff caused a "huge" impact on those who remained, and also affected the organisation’s ability to operate at full capacity.
"The cost of overtime and rest-home and hospital beds not being filled also impacts our occupancy rates and income," Mr Mepham said.
He attributed it to the impact of the Covid-19 pandemic, a shortage of nurses and caregivers in the country, and the temptation of higher pay offered to those who worked for Te Whatu Ora Health New Zealand (HNZ) amid the rising cost of living.
PSO did not exist to return a profit to shareholders and any profit supported its social services, he said.
This was true of other many other aged-care providers.
"The Government could help by offering targeted financial support to registered charities operating in the aged-care sector, which would enable providers like PSO to offer pay parity with Te Whatu Ora."
PSO’s financial situation was concerning, because while the overall financial result showed a net surplus of $600,000 this included net revaluation gains from investment properties.
"The underlying operating result is a significant net deficit of $1.6 million," he said.
"This is not as bad as some of the other Presbyterian organisations in New Zealand but still very sobering."
Chief executive Joanne O’Neill said the organisation planned to build new boutique Enliven retirement village communities.
Revenue from the sale of village properties would strengthen the organisation.
"PSO purchased Castlewood care home in Alexandra this year as we plan to build a retirement village on this site in the future."
While she did not specify what Enliven nurses were paid, it was between $20,000 and $30,000 less than their counterparts in HNZ, she said.
“Any employment that enables people to earn more to support their families in a cost-of-living crisis can be expected to cause attrition."
The number of Enliven staff was 510 at present and permanent staff turnover in Enliven was almost 30%.
