A tax credit claimed to save private residences for seniors

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A tax credit claimed to save private residences for seniors

An elder rides in an RPA.

Less than two weeks before the announcement of the budget in Quebec, the Regroupement québécois des residences pour ains (RQRA) is asking the Legault government for a tax credit on their payroll. The only solution, according to the group, to save these residences which have already suffered a lot since the pandemic.

Since January 2021, 301 private residences for seniors (RPA) have closed in Quebec. According to Marc Fortin, President and CEO of the RQRA, there will be others if the government does not intervene.

We are losing a lot of care workers who go to the government, to hospitals and CHSLDs because the salary is much higher and we are unable to follow, he mentions.

Marc Fortin, CEO, Quebec Regrouping of Residences for Seniors

With the number of seniors set to increase considerably in the coming years, it is time to act, claims the group.

By 2040, we are talking about 26% of the population who will be over 65 years old. In the next 10 years, there are going to be a million people turning 70. You have to be able to manage them. At the moment, we are not capable of it, deplores Marc Fortin.

In this sense, a tax credit turns out to be the ideal solution for the RQRA who hopes to see it in the next Girard budget which will be tabled on March 21.

“It's one of the easiest solutions to manage, it's one of the most effective solutions. It saved the written press, it developed and saved video games and artificial intelligence in Quebec. We need that helping hand there. »

— Marc Fortin, President and CEO of the Regroupement québécois des residences pour aînés

The Lokïa Group, which has 14 residences in Quebec and New Brunswick, is same opinion as the grouping. A tax credit would be beneficial for residences and their managers.

When we talk about payroll tax credit, it's having support for the people we employ and for #x27;we can continue to provide adequate care to our residents, explains Guy Tremblay, President and CEO of Groupe Lokïa.

Guy Tremblay, President and CEO of Groupe Lokïa, believes that the tax credit is a good solution.

Inflation and skyrocketing costs are putting additional pressure on seniors' residences in Quebec. Costs jumped 8-14%, according to the RQRA.

Even the smallest residences are affected, says Nathalie Paré, president and CEO of Groupe Patrimoine, which owns 170 apartments and multiple residences.

In a small residence, we are left with payrolls of millions of dollars to be able to meet the needs of this clientele because 90% of our clientele is rendered with care, she admits.

Nathalie Paré is Chairman and CEO of Groupe Patrimoine.

For the Lokïa Group, it is absolutely necessary to adopt a credit to prevent new RPA closures.

The scourge of closures will not end like this, believes Guy Tremblay.

Finance Minister Eric Girard will table his next budget on March 21 (Archives).

The RQRA and Guy Tremblay believe that further closures could be catastrophic for residents and the health care system in Quebec.

Just in the last few months, three private residences for seniors have announced their closure in the greater Quebec City region, including Ville Sainte-Foy just a few days ago.

If I closes a care unit of 75 or 80 beds, I can tell you that there will be a few hospitals in Quebec City that will be overwhelmed overnight, says Mr. Tremblay.

The study that we have done shows that there will be 1.1 billion more in cost to the State if there are 4 % of RPAs that are closing, adds Marc Fortin.

With information from Pascale Lacombe, Magalie Masson and Louis-Simon Lapointe

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