Cash-hit homes: ‘Don’t worry’
Reporter: Richard Hooton
Date published: 03 June 2011
COUNCIL chiefs have reassured residents in two cash-stricken care homes in Oldham not to worry and that contingency plans are in place.
Fears are growing about the future of Southern Cross — a national care home company that owns Treelands in Fitton Hill and Avalon Park, Salem.
The firm is in a “critical financial condition” after unveiling losses of £311 million in the space of six months leaving 31,000 elderly clients across the country concerned that their home could close.
But Oldham Council cabinet member for adult social services and health, Councillor Phil Harrison, said: “There’s been great strides forward in preventing the shutting down of the two care homes in Oldham.
“I’m getting quite positive feedback saying that there’s business being done at the moment and advising families not to worry. There’s a view that this will come out in a better way than we thought. We are keeping a close eye on it.”
Southern Cross is Britain’s largest care home operator with almost 750 care homes and thousands of staff. But its share price has tumbled as it struggles with rising rent bills and declining local authority fees.
It is restructuring its finances and hopes landlords will agree to defer 30 per cent of rent payments.
The council is responsible for people in the care of the local authority and people in private care.
If the worst was to happen and the business folded then residents would be moved to other homes.
There are fears that moving elderly residents would put them under great strain.
Councillor Harrison said: “It’s the council’s responsibility then and we will do everything we can to deal with that but it won’t happen overnight.
“In the past we have moved people sideways in a compassionate and comfortable way. They would get the best transfer to the best homes available. But I don’t think that it will happen.
“The council will be making sure we do the best for people in these homes and their families.”
The Government has also moved to bolster public confidence by giving a guarantee that residents will be cared for effectively.
Southern Cross chairman Christopher Fisher insisted going bust was not a scenario the company “anticipate arising”.
