Bureau Recommends: UK’s private care homes in crisis

An investigation by the Financial Times has revealed the dire state of the UK’s private care homes, with many teetering on the brink of bankruptcy and standards of care at a pitiful low.

The findings state that one in seven privately-run establishments in England was rated ‘poor’ or ‘average’ by the government regulator. The results showed that private care lagged firmly behind state-run institutions where one in 11 gained such ratings.

The paper reports that financial miscalculations have left private investors facing ruin. High prices were paid for care home companies but as competition has increased, and the number of patients declined, many companies are struggling under the weight of their debts.

In 2007 the Qatari Investment Authorty paid £270 million for Care Principles, a company that runs hospitals for people sectioned under the Mental Health Act.  Yet in April 2009 its lender Barclays Captial was forced to take over the reins and is now looking after hundreds of the country’s most vulnerable people.

The UK’s biggest care home operator Southern Cross has 30,000 elderly people in its care and it is battling to stay afloat.

Read the Financial Times’ full investigation here.