Show Hide image

Southern Cross not to back down from fee negotiations with councils

UK's largest care homes group Southern Cross has said that it will not give in to funds-starved coun

The statement of intent follows the annoucnement of annual losses that more than tripled over last year's figures.

"Given the cost pressures facing our industry, including the reasonable expectations of the people who work within it and the increasing acuity of residents placed in its care, it is very clear that no local authority can justify reductions in fee levels at this time," said Southern Cross chief executive Jamie Buchan.

The struggling Southern Cross's management - which reported an annual loss of £44.1m -- is hoping to receive a lifeline from the Coalition's plans to fund long-term care.

According to Buchan, the industry is awaiting recommendations of a report into the funding of care, likely to suggest that the NHS place post-surgery elderly patients into care homes to convalesce.

"This industry can't stand still," said Buchan, talking to the Times, adding, "There will be more re-enablement from the NHS and we believe that we have the ability to do that."

The care home operator which runs 752 care homes across the country also announced that its lenders Lloyds and Barclays had relaxed banking covenants