Councils transfer homecare services after CQC’s warning on Allied Healthcare’s continuing viability
November 29, 2018
National homecare provider Allied Healthcare is seeking to transfer or sell all of its homecare contracts to other providers after the Care Quality Commission issued a statement throwing doubt on the company’s continuing financial viability.
Saying it had a legal duty to notify the 84 local authorities affected, the CQC issued the statement in early November.
“Allied Healthcare had every opportunity to confirm a realistic financially backed plan to support the future sustainability of its business and failed to do so,” said CQC chief inspector of adult social care Andrea Sutcliffe.
“it is now a very unsettling time for everyone who uses Allied Healthcare’s services.”
The CQC reported on November 5 that Allied Healthcare was able to confirm funding until 30 November and that it had not given the CQC adequate assurance that it could sustain itself past this date.
Since then many local authorities have taken steps to find new providers. Allied Healthcare said the CQC’s warning had led to a number of customers to transfer care services to alternative providers and had also disrupted 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,” an Allied Healthcare spokesperson said.
“This has also meant that we have had to re-evaluate our long-term business plan.”
Allied Healthcare has since announced that it has been able to extend its existing credit line with lender Royal Bank of Scotland by up to three weeks beyond the 30 November and said it would continue to work closely with the CQC and all commissioners to ensure “minimal disruption to the care” during the transition.