False economies in homes transfer

Posted on July 1st, by editor in Caring Times. No Comments

John Shearer outlines a council’s plans to ‘externalise’ its care homes and the crippling impact this has had on smaller private providers. The Federation of Small Business (FSB) was asked to look into the method the Dumfries and Galloway Council had decided to implement as an “externalisation” process to rid itself of care homes which had fallen into such a serious state of disrepair that £4.3 million was needed for repairs and upgrading. The Council seems to have set itself two goals. The first was to ensure that the upgrading exercise was going to be brought about, the second was to address the fact that these council-run homes had unit costs that were far higher than those of the independent sector. Let’s cut to the chase and tell you what actually happened. We understand that the Council has agreed to give the properties away, retain any liabilities attached to the properties, and pay substantially more to the new independent sector operators than they originally paid for their own service delivery. No

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