Allied Healthcare, a major UK home care provider, is seeking to transfer or sell all its contracts to other providers in the wake of action from the Care Quality Commission, LGC’s sister title Nursing Times reports.
The firm, which offers support to 13,000 older and disabled people, revealed its decision to offload contracts last week.
It said in a statement that any such transfers would also include the moving over of staff.
The move follows the CQC issuing a warning notice on 5 November about the future financial stability of the company.
The CQC had said it was concerned about the “future viability” of services run by Allied Healthcare after the end of this month and warned 84 councils to make alternative arrangements.
The company had failed to provide adequate assurances regarding “ongoing funding” and there was now a credible risk of disruption to services, it said, noting that it had written directly to all 84 local authorities affected.
But the regulator’s so-called Stage 6 notification sparked a number of councils to begin transferring care services to alternative providers, and for staff to start leaving the company.
A spokesman for Allied Healthcare said: “The Stage 6 notification has negatively impacted Allied Healthcare, leading a number of customers to transfer care services to alternative providers, and disrupting staff retention and recruitment.
“These developments have intensified the impact of the challenging environment within which we operate and come immediately prior to the Christmas period, when pressures on care providers are at their highest,” he said. “This has also meant that we have had to re-evaluate our long-term business plan.
“We are therefore actively exploring a range of options in order to minimise disruption to continuity of care, including the sale or transition of care and support services on a regional or contract-by-contract basis to alternative providers best placed to deliver care at a local level,” he said. “Such sales or transitions will involve the transfer of staff.
“We continue to trade safely while this process is underway,” he said. “RBS as our existing lender has agreed to extend our current credit line by up to three weeks beyond 30 November, enabling us to deliver safe continuity of care whilst we explore and implement these options.”
He added: “We will work closely with the CQC and all commissioners of care to ensure that there is minimal disruption to the care that we provide across the UK whilst this transition takes place. Continuity of care is our number one priority.”