Telford council pledge over Southern Cross Healthcare homes
Thursday 2nd June 2011, 3:52PM BST.
Telford & Wrekin Council today pledged to work to ensure “continuity of care” is maintained for people it has placed in care homes run by a company battling to find a long-term solution to its financial crisis.
Southern Cross Healthcare, which cares for nearly 200 people in Shropshire including residents at homes in Telford and Newport, made a £311 million loss in the six months to the end of March.
It has said it will be forced to cut by 30 per cent the rent it pays to the landlords of the homes it runs.
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if all these home were run by local authorities or the goverment all this wouldn’t happen.
How can care home that must make a nice profit go bankrupt?
In this case a company buys it then sells all the assets and rents them back and then walks away with all the profit.
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…. and then tell the landlords who they sold them to that they’re not going to pay the rent anyway!
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Jeff. Local authority homes cost more than twice that of private homes per patient. If you as a council tax payer are happy to pay this then so be it. The problem lies with local councils not paying enough for the care provided. They also bed-block local hospitals , where the cost per patient per week is about £3000. Compare that with about £550 in a private nursing home. I own a 3* nursing home, rated as very good, and currently make a loss, which comes straight from my pocket. I believe we provide excellent care and represent good value for money. We have had no increase of fees for 2 years, yet minimum wage has increased by 5% over the period. Why should private homes pay for the care of their patients out of owner’s pockets? If nothing is done over the coming months, there will be many closures. You will then be paying twice as much to provide state-run care. Happy with this prospect?
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