Four Seasons Under Government Scrutiny

December 13, 2011 | By | 4 Replies More

 

 

 

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.

 

 

Related Posts Plugin for WordPress, Blogger...

Tags: , , , , , , , , ,

Category: Business Transfer, Care Operators, General Info, Local News

About the Author ()

Comments (4)

Trackback URL | Comments RSS Feed

  1. Mark Sadler says:

    As I said a couple of weeks ago (repeating what William Laing had said), FSHC is in a very different situation to SX.

    Lets face it reading this you would say that FSHC are acting very responsibly, which is in complete contrast to the management team at SX who set the company up to fail.

    Very interested to read about “Regulation 13″.

    Makes you think. However if I was setting a company up to fail so that the government and the tax payer picked up the pieces while I ran off with all the money to my tax haven, i’d probably keep quiet about Regulation 13.

    Perhaps company directors/owners later discovered to have ignored this rule should be imprisoned?

    • Editor says:

      Thanks Mark-It’s unlikely that there will arrests-No one has been arrested in the Banking world and we’re in the state we’re in so it appears that many of those involved with SX will remain free to spend their millions, off shore of course!

  2. This is interesting Jackie. We all know next year will be terrible and this is why the minister is worried. Fees must be scrutinised further to demonstrate how homes are delivering good quality of care heavily subsidised by private clients.

    • Editor says:

      Thanks Taleb, I just wondered if other operators have been in talks with this department? As most people are aware many companies have suffered the ultimate fate when restructuring their debts. Four Seasons and many other operators are also facing rising costs and cuts in payments from local authorities.

Leave a Reply