William Eichler 07 November 2018

Care home provider on verge of collapse, regulators warn

Care home provider on verge of collapse, regulators warn image

The financial problems of one of the UK’s largest care providers poses a ‘credible risk of service disruption’ to the local provision of social care, regulators have said.

The Care Quality Commission (CQC) warned on Monday that Allied Healthcare, one of the largest home care providers in England, could go bust next month.

This would affect 84 local authorities which have contracted the company to provide care in their areas.

Allied Healthcare announced it was applying for a Company Voluntary Arrangement (CVA) in April this year to restructure its debts.

The CQC, the independent regulator of health and social care in England, has said that the provider is able to confirm funding for services until 30 November 2018.

However, the regulator said they had not received ‘adequate assurance’ that there would be any funding after this date.

‘We have encouraged Allied Healthcare to provide us with a realistic financially backed plan to support the future sustainability of the business, and given them every opportunity to do so, but they have failed to provide adequate assurance regarding future funding,’ said Andrea Sutcliffe, chief inspector of adult social care at the CQC.

‘It is now CQC’s legal duty to notify those local authorities where Allied Healthcare is contracted to deliver home care services, that we consider there to be a credible risk of service disruption.’

A spokesperson for Allied Healthcare said they were ‘surprised and deeply disappointed’ by the CQC’s decision which they characterised as ‘premature and unwarranted.’

‘We have demonstrated throughout our discussions with the regulator that Allied Healthcare’s operations are sustainable and safe, that we have secured a potential replacement of our credit facility, that there is no risk to continuity of care and that we have a long-term business plan in place that will continue to deliver quality care across the UK,’ the spokesperson said.

‘The CQC has disregarded these assurances in spite of the robust evidence we have provided.’

To read more on this story visit The MJ (£).

Maintaining performance image

Maintaining performance

The 15 strongest performing councils in adult social care have been highlighted in IMPOWER’s latest productivity INDEX. Ralph Cook looks at the results.
Revolutionising mental health image

Revolutionising mental health

Cllr Jasmine Ali explains how Southwark Council is putting plans into action to revolutionise children’s mental health in Southwark.
SIGN UP
For your free daily news bulletin
Highways jobs

Social Worker - Family Support & Protection

Essex County Council
£30300 - £41475 per annum + plus benefits
We are one of the most effective and progressive Children and Families Service in the country. Our vision is to support families through strengths bas England, Essex, Basildon
Recuriter: Essex County Council

Senior Sustainability & Resilience Officer

Essex County Council
£30001.0 - £34017 per annum
This opportunity is to be offered on a 6-month, fixed term / secondment contract basisInterviews scheduled to be held Friday 17th April Job Purpose Es England, Essex, Chelmsford
Recuriter: Essex County Council

Senior Social Worker or Senior OT - Older Adults Team

Essex County Council
£38400 - £46475 per annum
Interviews for this role will take place via video calling using Microsoft Teams.Seeking skilled, motivated Senior Social Workers and Senior OT's who England, Essex, Colchester
Recuriter: Essex County Council

Principal Litigation Solicitor

Thanet District Council
Starting Salary £41,676 per annum, with opportunity for progression to £47,508 per annum.
We are a small and friendly team and are looking to expand with a number of senior legal roles Thanet, Kent
Recuriter: Thanet District Council

Information Governance and Equalities Manager

Thanet District Council
Starting salary of £38,916 per annum, with opportunity for progression to £44,352 per annum
We are a small and friendly team and are looking to expand with a number of senior legal roles Thanet, Kent
Recuriter: Thanet District Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue