The Far-Reaching Effects of Allied Healthcare's Demise

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The latest development in the downfall of Allied Healthcare has seen the troubled home care provider announce that it is exploring “the sale or transition of care and support services on a regional or contract-by-contract basis to alternative providers”.

The CQC had previously stated its concern about the viability of services provided by Allied Healthcare from the end of November and warned councils to put contingency plans in place, with the BBC reporting that the company has since been able to extend its credit by three weeks from this date. While some local authorities have already taken steps to find new providers, local news from around the country is now full of stories of councils seeking to re-assure their residents that these vital services will continue to be provided.

The chart below shows how public sector spend with Allied Healthcare was divided between April and July 2018. It lays bare the sheer amount of commissioners potentially affected by the company’s troubles and gives some idea of just how far and wide the consequences of its demise could be felt:

AlliedSpend

When Allied Healthcare hit the headlines earlier in the year, we blogged about what the company’s struggles could mean for other providers operating in the same market conditions. We revealed a dense “hidden layer” of providers and asked whether more local authorities should be digging deeper into their own supplier bases to try to pre-empt similar issues, as well as revealing how one local authority had awarded a contract to Allied Healthcare just 11 days before it announced that it was seeking a Company Voluntary Arrangement with its creditors.

At Porge, we help councils to better identify critical supplier relationships and provide insight tools that enable council staff to better manage the risk associated with external service providers. To find out more, contact us today.

by Martin Holmes

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