Southern Cross May Need Contingency Plan

Many are feeling the spending cuts effected by local authorities across the UK. Not least of these is Britain’s largest care home provider, Southern Cross. The provider has issues a profits warning resulting from a fee reduction from local authorities, along with rising rent rates.

In response, an investigation found that research groups were set up to find solutions should the Southern Cross become unsustainable from a business point of view. Part of the research has focused on emergency plans to help local authorities relocate residents should Southern Cross facilities suddenly need to close down.

The chairman of Southern Cross, Christopher Fisher, told The Telegraph that no concerns are necessary about the standards of care for residents, as this is one of the primary goals of the business, even in the presence of profit problems.

In response to the potential crisis, Southern Cross is involved in negotiations with landlords regarding rent rates.

James Buchan, Southern Cross Chief Executive, said: “Southern Cross firmly believes that it is in our mutual interests to reach an equitable agreement with landlords.”

Whatever the final solution may be, there is little doubt that Southern Cross will effect contingency plans to ensure that all its residents are sufficiently cared for in any eventuality.

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