Lyndoch Living needs to keep Terang's May Noonan aged care facility operator open or find an operator who will, according to MP Dan Tehan.
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The Member for Wannon said he had spoken to community members who were shocked and saddened by the announcement the facility would be closed.
"I call on Lyndoch to ensure that May Noonan continues to operate in the Terang community," Mr Tehan told The Standard.
"If they're not in a position to do that - which they're obviously not - they need to find another operator to keep it open."
Mr Tehan said it was not fair to ask people who had lived in a community for their whole life to move away in their later years.
"It's absolutely essential that a town like Terang has an operating aged care facility where people who have lived in the community have the chance to spend their last years," he said.
"Aged care facilities provide employment but most importantly they're incredibly important to the fabric of a town.
"It's not fair to force someone to move away from the community they have lived in for so long."
Mr Tehan said he had spoken to a number of community members about the revelation it was shutting.
"It came as a shock to community members, but the biggest shock was that an agreement hadn't been made with another provider to keep May Noonan open," he said.
"The overwhelming view of community members is that they want to keep it open."
Lyndoch Living made the shock announcement in late May.
Lyndoch board chair Sue Cassidy said it had been a "really difficult" decision to shut the centre.
"We've looked at everything we could possibly do ... but we've made the decision that we can no longer keep May Noonan open," Ms Cassidy said.
"It is pretty devastating and it has been a massive decision for the board to go this way."
She said low and declining occupancy, combined with chronic staffing difficulties, made operating the facility unsustainable.
A response from Lyndoch Living has been sought.
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