Loss-making care homes set to close in Birmingham

THREE loss-making care homes in Birmingham are set to be closed by their owner in a move which places 162 jobs in doubt.

The decision by Cheshire-based Four Seasons Health Care group also means 95 residents are likely to have to find alternative care accommodation.

The homes affected are Oaklands in Moseley, Heath House in King’s Norton and Ivyhouse in West Heath.

The company says each home is operating with fewer residents than they have capacity for and at a loss.

The Care Quality Commission rated Ivyhouse inadequate after its last inspection in April.

Meanwhile Heath House and Oaklands were told by inspectors in May and July respectively that they both required improvements to their care.

Rachael Junge, regional managing director of Four Seasons Health Care, said: “The proposal to cease operating these homes has not been arrived at easily, but we think it is unavoidable based on a combination of factors.

“Each of the homes is operating at a loss and has been for some time. The number of residents living in each home is well below its capacity.

“Additionally both Oaklands and Heath House would require a very substantial investment to reshape and modernise them to the standards we expect and we cannot justify this given their current and projected low levels of occupancy.

“In the case of Ivyhouse, there have been difficulties with recruiting and retaining nurses and care assistants of the right calibre and staff changes have led to challenges with maintaining care quality to the standards that we expect all of our homes to provide.”

Oaklands, a specially-converted Victoria property, provides 24/7 care and the residents have varying needs from specialist nursing support to general assistance with everyday living. The home offers nursing care for older people, as well as respite care.

Trade union Unison said staff at all three homes were concerned for their future.

Workers may be able to transfer to other homes run by the firm. It has 11 care homes and 65 day care centres in the West Midlands area.

Birmingham City Council said it would support residents by assigning social workers to the homes and establishing a drop-in surgery service to assist residents and relatives.

Four Seasons, the UK’s biggest care homes provider housing 20,000 elderly people across 450 homes, has been hit by a fall in local authority fees and rising costs in addition to the introduction of the national living wage.

The company is also struggling with £525m of debt, with annual interest payments of more than £50m.