NHP is to run the Southern Cross care homes alongside Dr Chai Patel, the former boss of the famous Priory clinic.
The creation of the new business, which is yet to be named, helps to secure the future of more than half the Southern Cross care homes needing new operators.
Southern Cross, Britain\’s biggest care home group, announced last week that it was beginning an \”orderly closure\” after its 80 landlords decided to take back their 752 care homes. The company had tried to cut its £250m rental bill because of falling occupancy rates and fees.
Landlords such as Four Seasons and Bondcare said they will operate their own homes. However, more than 500 Southern Cross properties still needed new operators, sparking fears some could close.
Dr Patel said the deal between NHP and his company Court Cavendish will bring \”certainty\” to the 249 homes owned by NHP. The new company will be \”properly funded with a proper future providing high-quality services,\” he added.
So, private companies running public services.
I as and when one of them goes bust, do they then blow up the homes? Turf the elderly out onto the street? Go from having public services to not having public services?
No, that isn\’t what happens at all.
The management that fucked up is out on its ear. The shareholders stupid enough to hire them have lost all their money. The homes still exist, the elderly are still cared for and a new set of managers and a new set of shareholders step in to try and make money out of it all.
Now, perhaps this isn\’t the very bestest way of running the whole thing. I\’m certainly open to offers of new and different ideas. But the most important part of any such new idea will be: how do we get rid of management that fucks up? How do we incentivise those who own the system to hire good managers?
Only when you\’ve managed to create a system within the public sector that manages those two tasks do you have an idea that is worth considering. Oh, and good luck with that by the way.