At the end of last month, Four Seasons Health Care – one of the country’s largest care home providers – went into administration, with two of its holding companies appointing Alvarez & Marsal to oversee the process.
Although the move was not expected to affect care arrangements or lead to the closure of homes, it marked yet another chapter in the recent story of struggling care businesses and saw the current funding model for social care placed under the spotlight once again.
The two charts below show the top five providers of elderly residential care services to the Public Sector in 2018/19 (as at the end of January 2019) together with how public sector spend with one of them (not Four Seasons) has been faring over the last five financial years:
It’s important to note that the above data does not include ‘redacted’ data or any private spend, however it does hint that Four Seasons may well not be alone in feeling the pressures of a difficult market climate.
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