In a written statement to government Paul Burstow Minister of State-Care services has confirmed that Four Seasons have met with senior officials from his department twice in the last 12 months to explain the company’s financial position and his department will continue to keep in close touch with the company.
During these meetings Four Seasons has explained its trading position and its plans to deal with its debt restructuring.
It also reported that it is operating profitably and is better able to cope with fluctuations in the market. Although a similar model to the failed Southern Cross, Four Seasons are in a healthier position because they own most of their homes.
The company’s debt matures in September 2012 and the process to restructure the debt has already begun, they anticipate the arrangement to be completed by then.
Paul Burstow said that his department is not concerned about Four Seasons’ financial position but that they would be keeping the situation under review.
All care operators when registering with the CQC are required to declare that their organisation will take all reasonable steps to remain financially viable.
If the CQC has concerns regarding a declaration, it will ask further questions to determine whether the provider is compliant with Regulation 13 of the CQC (Registration) Regulations 2009, which requires providers to ensure the “financial viability” of their enterprise, before deciding whether to register them.