The nursing home is part of the Cambridge Aged Care group and has been in the spotlight recently for alleged unpaid monies to creditors.

The Flora Hill site is sub-let by approved provider Nepean Hospitals and was raided by armed federal police last year.

A spokeswoman for the Department of Health and Ageing yesterday confirmed an administrator had been appointed over Nepean Hospitals.

"The administrator is responsible for meeting all obligations of the approved provider under the Aged Care Act 1997," she said.

"This includes ensuring that residents receive high quality care. The administrator is also responsible for the future of the company. In the event that the administrator determines that the services have to close, they will be responsible for the relocation of residents.

"The Department of Health and Ageing will work with the administrator to support the residents."

The spokeswoman said the Department of Health and Ageing had serious concerns about the conduct and quality of care provided by the Cambridge group and had been closely monitoring the organisation.

"The Aged Care Standards and Accreditation Agency has undertaken a heightened level of monitoring of Cambridge's services in the last 12 months including frequent visits to Cambridge homes, unannounced assessment contacts, full review audits, re-accreditation audits, and assessment contacts," the spokeswoman said.

“In addition, a number of statutory notices have been issued to Cambridge requiring provision of information, attendance at interviews or rectification of non-compliance. 

“The Department of Health and Ageing’s investigations have extended as far as conducting searches of premises under warrant with the assistance of the Australian Federal Police.” 

“The department’s investigation is continuing and matters relating to investigation cannot be disclosed.”

The spokeswoman said any residents or family members concerned about their bonds should know the Accommodation Bond Guarantee Scheme ensured the refund of bond balances by the federal government to residents in the event that a provider was unable to refund bonds due to bankruptcy or insolvency. 

“The department will work as quickly as possible in the event that the guarantee scheme is triggered,” she said.