A controversial aged care executive has received $1 million in government funding.

The federal Health Department has engaged Gary Barnier, who previously led Australia's largest nursing home chain, Opal Aged Care.

Mr Barnier resigned from Opal in the wake of reports of evidence of neglect of some residents and his personal behaviour towards customers and their families.

He now owns and runs a new company, which has received two major contracts to help prevent nursing home operators from financially collapsing.

The contracts were awarded through a limited tender process, so they were not publicly advertised ore opened to companies to bid for the work.

The first deal with Mr Barnier’s Cooperage Capital, worth $415,800, was followed by a second contract, worth $503,800.

Mr Barnier is the only person who performed work for Cooperage Capital under the contracts.

“Cooperage Capital sounds like a well-established company with multiple partners and locations, a bit like KPMG or PwC,” Labor senator Kristina Keneally told a recent senate estimates committee.

“But it's actually a one-man company ran out of a two-bedroom, two-bathroom flat.”

Mr Barnier is also a paid member of the Aged Care Financing Authority, receiving $429 each time the authority meets.