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Beleaguered care provider sold following CQC warning

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One of the country’s largest homecare providers has been sold after the Care Quality Commission warned about its financial stability.

Allied Healthcare, which held contracts with 84 councils providing care to 13,500 people, has been acquired by Health Care Resourcing Group, which has provided health and homecare services for 18 years.

In a statement, Allied Healthcare’s new chief executive Narinder Singh said there will be no break in service as a result of the sale and remaining staff would retain pay levels and working conditions.

However, an unspecified number of councils have terminated contacts with the firm and transferred services since the CQC warned commissioners to make contingency plans last month.

One of these is Cheshire West & Chester Council which has commissioned Starcare and Human Resource Group to provide support to nearly 700 people, while Special Needs Care has been contracted to support 100 adults with learning difficulties.

Cabinet member for communities and wellbeing Louise Gittins (Lab) said: “I would like to personally assure all those who receive care and support from Allied Healthcare, and their families, that you will not see any changes in the way that care is delivered, and we will work hard to ensure a seamless transition to your new provider.”

Allied Healthcare was put up for sale after failing to reach a new financing arrangement with banks following the CQC’s warning, which is known as a stage 6 notification.

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