Southern Cross Healthcare

Tuesday 7th June 2011 Written Statements

[The Minister of State, Department of Health (Paul Burstow)]

The House will be aware of concerns over the future financial viability of the care home company Southern Cross Healthcare.

The Government understand that recent events and media speculation will have caused concern to residents in Southern Cross care homes, their relatives and families and staff

The Government’s primary concern in this matter is for the welfare of the residents living in Southern Cross homes. That must be paramount. For that reason, it is important that this matter is resolved in a measured and orderly manner.

Officials have been in frequent contact with Southern Cross’s senior management over the last three months and continue to be so. Ministers have been monitoring the situation carefully.

Through discussions with Southern Cross, its landlords and its lenders, we have ensured that everyone involved understands their responsibilities towards the residents.

Whatever the outcome of the restructuring by Southern Cross, no one will find themselves homeless or without care. The Government will not let that happen. The Department has been working with the Local Government Association, the Association of Directors of Adult Social Services and the Care Quality Commission, to ensure that all agencies are clear on our respective roles and responsibilities.

It is for Southern Cross, its landlords and those with an interest in the business, to put in place a plan that stabilises the business and ensures continuity in the operation of the care homes. That process is in hand and we must let it continue. We believe that the commercial difficulties that Southern Cross has encountered are capable of resolution within the sector. It is not the role of Government to interfere in these commercial negotiations.

All parties involved—including other Government Departments, local authorities and the Care Quality Commission—are ready to take decisive action if these plans do not create a viable platform for the future

There are clear and effective protections in place that cover this situation. No resident—whether publicly or self-funded—would be left homeless or without care. In an emergency, a local authority can provide residential accommodation to anyone who has an urgent need for it. A local authority would continue to provide care for any self-funding resident who was unable to find or arrange care for themselves.

The Government will continue to monitor the situation closely and reiterate to all parties that they have a collective responsibility to resolve the situation in a way that does not put at risk the continuity or quality of care of residents.