Is care home model bust asks Charity

Age Scotland is calling on the Scottish Government to review the financial model used by private care home providers following the collapse of Aberdeen based care home company Argus as a result of bad debts and cash flow problems. 

Argus operates 12 nursing and residential homes across Scotland; three in Ayr, two in Aberdeen, and one in each of Peterhead, Turriff, Oban, Bishopton, Dunoon, Castle Douglas and Blairgowrie.  More than 500 residents and 780 employees will be affected by its collapse.  Accountants and business advisers PKF have been appointed administrators. The firm said buyers would be sought amid efforts to minimise disruption. 

Callum Chomczuk, Age Scotland Senior Policy Officer, said: "The top priority now is to ensure continuity of care for older residents.

"However, with this crisis coming only a few months after the collapse of Southern Cross, it suggests that in the very near future the financial model underpinning private care providers needs to be put under the microscope.

"We believe that companies which are not able to show they have a sustainable business model should not be allowed to run care homes.   The onus is now on Scottish Government and Care Inspectorate to demonstrate that they have a grip on the situation and a robust plan for ensuring it doesn't recur.

"Our older people in residential care and their families deserve certainty, peace of mind and most importantly of all, high quality and affordable care.  At the moment is far from clear that they are getting this."

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