Care home bosses deny closure rumours
Published: 11:40, 24 March 2011
by Adam Williams
awilliams@thekmgroup.co.uk
FEARS that 10 private care homes across Kent face closure have been quashed by owners.
Southern Cross Healthcare, who run the Highfield Care Centre in Bekesbourne, near Canterbury and the Kingsfield Care Home in Faversham, have moved to deny rising rents and falling share prices will leave their business crippled and residents homeless.
The GMB Union, which represents about 50 per cent of the company’s workforce nationally, this week claimed Southern Cross was struggling to pay the rent on its 750 homes.
But Southern Cross regional director Mark Cash moved quickly to dampen any speculation about the company’s solvency.
He said: “Residents in our care homes do not face the prospect of being made homeless.
“As a PLC, we have to keep investors informed of changes to our business outlook if they differ from previous statements.
“Last Monday, we made an announcement regarding the change in our business outlook since February.
“Like all independent care providers, we continue to face challenges because fewer people are being placed in our homes by local authorities, many of whom are seeking to reduce the fee levels they pay in line with public spending cuts.”
Southern Cross are now working hard with their banks to reduce their rent bill.
However, GMB spokesman Paul Maloney believes the full situation is yet to be spelled out to
employees.
He added: “We would like to see a letter of reassurance sent to our members stating the homes are fully secure.
“When you take as much money out of a business as Southern Cross has, it’s very hard to put it back in.”
Highfield and Kingsfield care homes cater for 73 residents and 79 staff.
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