Four Seasons have agreed the transfer of 57 of the 288 care homes from the now failed Southern Cross.
A further 88 will be transferred in the 2nd tranche.
This arrangement is with the full knowledge of the Care Quality Commission.
Four Seasons have assets currently valued at £350m and debts due to be paid towards the end of next year of £750m.
A problem in itself but where exactly will this leave all those involved and where will the money come from?
Their only means of income is from providing care , so will this be affected and will staff loose their jobs or corners be cut? Will the quality of care be reduced?
The GMB Union have asked the CQC to investigate whether this is a suitable arrangement -So everyone who should know; should now be on alert.
Paul Burstow Minister for Health-Care commented to Care Industry News that;
“We have also started an engagement exercise, ahead of the Social Care White Paper in the spring 2012, to identify the key priorities for change in the system and to hear people’s views on the findings of the Commission on Funding Care and Support.
“Recent events with Southern Cross have highlighted the risks involved when a large provider fails. We want the engagement exercise to focus on the market and how its development can be supported in the future. It is also important to specifically engage on the appropriate approach to market oversight, and whether further measures to try and prevent or manage provider failure and ensure service continuity are required.”
Four Seasons Healthcare is built on a similar arrangement to that of Southern Cross which is why the GMB question the sense of transferring all these homes when their own position appears to be particularly precarious.
RBS and various products that involve RBS is the largest shareholder with 38%. The bank must be concerned given the fact that they wrote off £300m of loans during the drawing up of this arrangement.
Four Seasons holding company is registered off-shore in the Cayman Islands and in Guernsey.