IRT Group's southern-most aged care centre in the state has been sanctioned by the health department after failing to meet quality standards.
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Sanctions were imposed on IRT Dalmeny on February 15 after an unannounced audit by the Aged Care Quality and Safety Commission in late January.
"The health, safety and well-being of older people who reside in aged care services is of paramount importance to the government," a health department spokesman said.
"The department determined there was severe and immediate risk to care recipients (at IRT Dalmeny) in relation to human resource management, clinical care, pain management, behavioural management and mobility and dexterity and rehabilitation."
Under the sanctions, the Ruth Place facility will not be eligible for federal funding for any new care recipients for six months. It also stands to lose its approval as an aged care provider unless it complies with all 44 national standards of care by mid August.
IRT CEO Patrick Reid said he was "devastated and disappointed" that the Dalmeny centre - one of 19 IRT facilities across NSW, ACT and Queensland - had failed to make the grade.
He said the site housed two sections - the high-care Dalmeny Aged Care Centre which had failed to meet 27 out of 44 standards; and the lower-care Lakeview Lodge which had 13 unmet standards.
"I apologise to the residents and families, and also to the community for failing to meet the expectations of quality care - something we pride ourselves on," Mr Reid said.
"I can only assure them that full accreditation will be achieved at the centre within the required timeframe."
Under the terms of the sanctions, IRT has had to appoint a clinical advisor and administrator to oversee the required improvements.
"As soon as we became aware of the issues we strengthened our continuous improvement plan and have already made good progress in turning things around," Mr Reid said.
"And while we pride ourselves on training and education, we've fallen short of the standards here so have also implemented additional training for all staff.
"Any lessons learnt here will carry across the organisation."
The Dalmeny facility houses 77 residents, cared for by 60 staff.
Mr Reid said a resident and family meeting was held on Thursday to explain the situation, and answer any questions they had.
Management has also met with staff at the facility.
The health department and the aged care commission will closely monitor the provider's return to compliance. The department spokesman said if families or friends had any concerns about the care of their relatives they should contact the commission on 1800 951 822.
