Agenda item

Council Notes:

1. That the private care home provider Southern Cross is now being wound up following several months of financial difficulties.
2. The financial difficulties of Southern Cross arise from its status as a private equity firm, which operates a high-risk business model depending heavily on borrowing.
3. Southern Cross has been responsible for the provision of two care homes in Medway: Copper Beeches and Frindsbury Hall.
4. Council statistics predict that over the next decade we will see the population of over-65s in Medway increase by 47% (16,300 people), a rise 8.3% greater than the national average.

Council Believes:

1. The presence of private equity firms in the provision of care homes has the potential to create financial instability.
2. The problems created by struggling care home providers such as Southern Cross are compounded by the added pressures of:
   1. Local authority budget cuts to adult social care
   2. Growing demands placed on services due to ageing populations
   3. Struggling property markets
3. Instability in the care home system can lead to:
   1. Lack of continuity in care
   2. Inexperienced providers
   3. Poor quality care
   4. Upheaval for vulnerable and elderly residents

Council Resolves:

1. To provide assurances that Medway’s care home residents will not be negatively affected by Southern Cross’s failure
2. To provide assurances that measures will be put in place to safeguard care home residents in Medway
3. To ensure:
   1. Rigorous quality regulation of care home providers
   2. Stringent financial regulation of care home providers
4. To provide value for money for taxpayers and decent working conditions for care professionals.

Council Notes:

1. That the private care home provider Southern Cross is now being wound up following several months of financial difficulties.
2. The financial difficulties of Southern Cross arise from its status as a private equity firm, which operates a high-risk business model depending heavily on borrowing.
3. Southern Cross has been responsible for the provision of two care homes in Medway: Copper Beeches and Frindsbury Hall.
4. Council statistics predict that over the next decade we will see the population of over-65s in Medway increase by 47% (16,300 people), a rise 8.3% greater than the national average.

Council Believes:

1. The presence of private equity firms in the provision of care homes has the potential to create financial instability.
2. The problems created by struggling care home providers such as Southern Cross are compounded by the added pressures of:
   1. Local authority budget cuts to adult social care
   2. Growing demands placed on services due to ageing populations
   3. Struggling property markets
3. Instability in the care home system can lead to:
   1. Lack of continuity in care
   2. Inexperienced providers
   3. Poor quality care
   4. Upheaval for vulnerable and elderly residents

Council Resolves:

1. To provide assurances that Medway’s care home residents will not be negatively affected by Southern Cross’s failure
2. To provide assurances that measures will be put in place to safeguard care home residents in Medway
3. To ensure:
   1. Rigorous quality regulation of care home providers
   2. Stringent financial regulation of care home providers
4. To provide value for money for taxpayers and decent working conditions for care professionals.

Councillor Brake, Portfolio Holder for Adult Services, supported by Councillor Mason, Portfolio Holder for Corporate Services proposed an amendment that the motion be replaced with:

This Council notes:

1.                  That the Care Quality Commission (CQC), which independently regulates health and social care, has rated 98.9% of care providers in Medway as ‘Good’ or ‘Excellent’

2.                  That when the Southern Cross issue arose, the Council worked with the company to ensure that the future of the two homes they operated in Medway (Frindsbury Hall and Copper Beeches) was secure and sustainable.

3.                  That the landlords for both homes are well-known care operators registered with the CQC.

4.                  That the Council has given a public assurance that residents will not be negatively affected by the Southern Cross issue.

On being put to the vote the amendment was carried and became the substantive motion.

On being put to the vote, the substantive motion was carried and agreed.

Decision:

This Council notes:

1.         That the Care Quality Commission (CQC), which independently regulates health and social care, has rated 98.9% of care providers in Medway as ‘Good’ or ‘Excellent’

2.                  That when the Southern Cross issue arose, the Council worked with the company to ensure that the future of the two homes they operated in Medway (Frindsbury Hall and Copper Beeches) was secure and sustainable.

3.                  That the landlords for both homes are well-known care operators registered with the CQC.

4.                  That the Council has given a public assurance that residents will not be negatively affected by the Southern Cross issue.