Top care home boss warns of closures

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25% of the care homes owned by the biggest UK care home company, Four Seasons, are losing money, says Guy Hands, the founder and chairman of Terra Firma, the private equity firm which bought Four Seasons for £825m in 2012.
He goes on to warn that if the government doesn’t increas funding to help deal with the double whammy of declining council fees and the introduction of the National Living Wage in April 2016, then Four Seasons will start to sell and close it’s loss-making homes. It will also have to increase the fees paid by private clients.
“Yes, I think inevitably we will have to sell homes, some of which will stay as nursing homes, but some of which will end up closed and changing their use. It’s not something we want to do. You can’t just close a home, you have to think about the residents.
“For the last three years we have assumed the government would look at the economic effect of their policy and make a decision. I don’t think the effects will be felt this winter, but next April or May is when you will see care homes closing or for sale.”
Hands sees a lack of long term centralised planning by the government as a key cause of the current state of Care Home provisions citing the anomaly where a hospital gets £3,00 a week ot care for an elderly person and a care home £500, yet most residents are as poorly as those staying in a hospital.