Agenda item

6.1  Jonathon Lillistone, Head of Commissioning Adult Social Care, presented the report on managing financial risks to care homes and contingency planning. He began by setting out the background to the exposure to Southern Cross. Heath Care One and Four Seasons took over these homes and care is purchased by spot contract. Southwark Council also have Anchor Trust and Abbey Health Care providing care on block contracts.

6.2  The Head of Commissioning explained that financial checks on contracts managed by spot contracting are focused on those the council have greatest exposure to and this is 5 out of 400 spot contractors.

6.3  The Head of Commissioning explained that some of the financial information that comes back is very complex and I and other colleagues struggle to understand it. He explained there has been some organisational learning since the demise of Southern Cross and a learning disability provider that faced insolvency.  The council worked with a special legal company and officers did some specialist training.

6.4  A member asked how regularly financial checks are done and the Head of Commissioning responded that these were done at least annually and also if there are alerts.

6.5  A member referred to the role of central government and national co-ordination from organisations such ADASS if a provider was to fail. The member asked about local providers such as Anchor Trust and asked if these would be large enough to warrant national intervention. The Head of Commissioning responded that and Four Seasons and Home Care One are big enough to trigger a national response.  Abbey is probably at the scale that there might be a London wide regional intervention.

6.6  The Head of Commissioning said that Anchor are a housing association and as such are better regulated and are obliged to have greater financial liquidity. Organisations such as these do not have the financial liabilities of bigger commercial providers. The Head of Commissioning added that they also provide line by line financial transparency in their statements. The Chair reported that NHP are the legal owners of Home Care One homes and their loan to value ration is 165, therefore the council is going back to a high level of risk.

6.7  The Head of Commissioning was asked if there are contingency plans for alternative beds and he responded that the council does have these plans but the focus is on continuity as the  consequence of moving is not good. He explained that there is a high mortality rate if older people have to move from their homes.

6.8  A member asked if we still have an embargo on Tower Bridge. The Head of Commissioning confirmed that they did and with Camberwell Green. He reported that there has been some positive progress on both these homes but the council wants to be cautious. The officer added that the council have visited Burgess Park since the transfer of ownership and there have been some positive improvements. He reported that the number of people who eat communally has increased to double figures.

6.9  The Head of Commissioning was asked about the Lay Inspector reports and if they went back to the home owners. The officer responded that they did not, however the council do find them useful. He added that some extra training is being delivered to Lay Inspectors on recognising the importance of dignity in care delivery.