A question mark hangs over the future of Kent’s care services with the pending sale of the county’s largest provider.

Last year Nestor Primecare Services Limited, trading as Allied Healthcare, was contracted by Kent County Council to provide 700,000 hours of care per year to elderly and vulnerable people, the biggest single care contract in the county.

But with the news earlier this year that Allied Healthcare owner Saga intended to sell the business, care industry insiders have raised concerns over who will take on the massive contract.

A care manager, who wished to remain anonymous, said: “Given Saga’s stated intentions to cease direct contract work for local authorities there is now a worrying question mark over how the 700,000 hours that Allied Healthcare was contracted to provide to elderly and vulnerable people in Kent will be delivered.

“Is there enough capacity in the industry to take on a contract that size? I would suggest there isn’t.”

“Is there enough capacity in the industry to take on a contract that size? I would suggest there isn’t” - Industry insider

KCC’s contract with Allied Healthcare is up for renewal in June 2015.

The council told KentOnline it was “keen to understand the implications of the sale”, but said it Saga’s withdrawal from public sector care provision would not have a direct impact on the contracts.

Earlier this year Saga announced it was withdrawing from providing healthcare services to local authorities because the margins were insufficient.

In a statement to investors, Lance Batchelor, Saga’s Group chief executive officer, said: “As part of its strategic review, Saga has decided to focus on privately funded homecare where Saga has a relationship directly with the customer.

“As a result, the parts of the Allied Healthcare business focussed on local authorities and the NHS do not fit with the Saga business model and the decision has been taken to divest this part of the business.”

Saga said Allied Healthcare would be subject to a one-off write down (reducing the book value of an overvalued asset), by an amount to be determined over the next few months.

KCC says it is facing huge financial challenges in paying for care due to swingeing government cuts.

A spokesman said: “Local authorities have experienced cuts from central government and are facing huge financial challenges, which is why we have changed the way we deliver home care services to produce a sustainable, quality service.

“We have reduced the number of providers leading to economies of scale, cutting management and admin costs and focussed services in geographic areas, reducing travel times and costs. Fewer providers also means better management of the contracts.

“We would like to reassure everyone who receives homecare that there is no concern that Allied Healthcare will cease to provide their care.

"Allied Healthcare is one of the country’s largest care providers and as such we are confident it will continue to provide home care services to us into the future, regardless of the outcome of the sale. There is no question over Allied Healthcare’s ability to continue to fulfil this contract.”