Operators found for Southern Cross care homes in Tayside and Fife
New operators for Southern Cross care homes in Tayside and Fife have finally been identified, a month behind schedule.
- By Stefan Morkis
- Published in the Courier : 01.09.11
- Published online : 01.09.11 @ 10.27am
Southern Cross was the UK's largest care home operator but a combination of rising rental costs and falling income sent it into a financial tailspin earlier this year.
The group tried to renegotiate rent agreements with its landlords — who owned the actual buildings it operated care homes from — but all 80 of them chose to walk away from the group rather than continue working together.
Between them, the landlords own 750 care homes across the UK. New operators have been found for all but 64.
Together, Southern Cross care homes house 31,000 elderly and vulnerable residents and employ 42,500 staff.
New operators were suppose to have been found by August 1 but details were only released on Wednesday.
Three care homes in Angus, Cairnie Lodge and Lunan Court in Arbroath and Finavon Court in Forfar, will be run by Court Cavendish.
In Dundee, four care homes will be taken over by new operators.
'Subject to change'
Pitkerro Care Home will be taken over by Pearlcare, Ballumbie Court and Riverside View will be passed to Court Cavendish and St Columba's in Logie Street will be taken over by Bondcare.
In Fife, a new operator is being sought for Forth View care home, Methil.
The Beeches in Dunfermline, Balfarg, Lomond Court and Woodside Court in Glenrothes and Chapel Level in Kirkcaldy will be passed to Court Cavendish. Four Seasons will take over Adam House in Dysart.
Orchard Care Homes will operate Muirton House in Blairgowire while the remaining Southern Cross care homes in Perthshire, The Birches in Crieff, Catmoor in Scone and Strathtay House in Perth, will be run by Court Cavendish.
Justin Bowden, GMB national officer for Southern Cross care home staff, warned there may still be more changes to come.
He said: "This list of over 30 prospective operators has come a month later than planned.
"The list may be subject to changes as certain landlords may switch operators late in the process. There are 64 homes currently without an operator."
Time pressure
He added: "Operators must have the financial strength to take over these homes, to provide decent standards of care to residents without a repeat of the financial difficulties Southern Cross encountered.
"Regulators must ensure that in the business plan for each home rents are reduced to market clearing rates.
"Above all councils who pay the majority of the bills and the operators must work to ensure full transparency in all aspects of the business plans."
Southern Cross and each of the prospective operators will now enter into consultations with GMB under the Transfer of Undertakings (Protection of Employment) regulations.
This will cover the transfer of staff on all their existing terms and conditions, like pay and hours of work, as the law requires.
Mr Bowden said: "We have less than two months — and for 385 homes less than a month — to secure a smooth transfer for residents and staff."
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