Care homes face finance check

Care home owners will be forced to prove they are financially stable to avoid a second Southern Cross-style collapse, officials said. The Government is to implement a series of safeguards to prevent a repeat of the crisis.

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Fear and upset Southern Cross caused 'unacceptable'

Everyone who receives care and support wants to know they will be protected if the company in charge of their care goes bust.

The fear and upset that the Southern Cross collapse caused to care home residents and families was unacceptable.

This early warning system will bring reassurance to people in care and will allow action to be taken to ensure care continues if a provider fails.

– Care and Support Minister Norman Lamb

Read: Care homes face finance check

Owners of care homes face a 'tough series of checks'

The Care and Support Minister Norman Lamb has said that the Care Quality Commission (CQC) will implement a "tough series of checks" on the largest care companies - including those that provide care in people's own homes.

The move will give "early warnings" if a company is in trouble, he said.

The Care Quality Commission CQC will implement a "tough series of checks". Credit: Angelika Warmuth/DPA/Press Association Images

The CQC will have power to require regular financial and relevant performance information from the 50 to 60 largest companies, and providers will also be forced to submit "sustainability plans".

And if a company is in trouble the CQC will have power to commission an independent business review to help the provider to return to financial stability.

Care home owners to face financial checks

Care home owners will be forced to prove they are financially stable to avoid a second Southern Cross-style collapse, officials have said.

The Government is to implement a series of safeguards to prevent a repeat of the crisis.

Care and Support Minister Norman Lamb announced that the Care Quality Commission (CQC) will be able to monitor the financial health of the largest providers.

The abrupt collapse of Southern Cross, Britain's biggest care homes operator, caused turmoil for more than 30,000 elderly and vulnerable people in 2011.