Elderly residents across Wales are being forced to move after Welsh councils shared "significant concerns" about two private care homes' finances. Carmarthenshire County Council and Pembrokeshire County Council have terminated their contracts with Plas Y Bryn Care Home in Cwmgwili, near Llanelli, and Ridgeway Care Home in Llawhaden, near Narberth, after attempts to understand the care homes' operator's finances were unsuccessful.
As a result of the councils giving notice on their contracts, vulnerable residents will be found new accommodation in their counties. Plas Y Bryn Care Home has facilities for 34 residents and Ridgeway Care Centre can house up to 47 residents.
Raqia Bibi and Mohanananthan Kuhananthan are the directors of Mufulira Ltd, provider of Ridgeway Care Centre, and Comfort Care Homes (Plas y Bryn) Ltd, provider at Plas Y Bryn Ltd. They are also directors and owners of RB Care Homes, providers of Pontypridd Care Centre, which is facing a winding up petition from His Majesty's Revenue and Customs.
Pontypridd Care Centre had its contract terminated with Rhondda Cynon Taf Council, Merthyr Council and Cwm Taf Morgannwg University Health Board last month. Staff previously claimed that they had not been receiving wages from RB Care Homes, whose registered address is in Chislehurst, south west London.
It's understood RCT council had been forced to step in to pay staff's wages for the last two months. The local authority previously said that council staff were aiming to find alternative care facilities for residents by October 6.
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A statement from Carmarthenshire Council and Pembrokeshire Council said they have had to make the difficult decision to give notice on their contacts to the care company following "significant concerns" with the care home operators' financial position and "inability to pay their staff and creditors". A spokesperson for Pembrokeshire Council said: "Work is continuing between Carmarthenshire County Council (CCC), Hywel Dda University Health Board (HDUHB), Pembrokeshire County Council (PCC), and Care Inspectorate Wales with the companies following concerns about the management of their finances. Collaboratively, CCC, HDUHB and PCC have been providing financial support to ensure that the care companies can meet their financial obligations and that care is not impacted. This has included bringing regular payments forward to enable the companies to pay staff salaries.
"There have been continued attempts to work with the operators to understand their financial positions, without sufficient information being presented. As a result, the councils and the health board have had to take the difficult decision to end their contracts with the care companies. The decision has not been taken lightly and we are aware of the significant implications that this will have on people both living and working at the care homes.
"A variety of options have been considered, but unfortunately due to the legal and financial circumstances that surround the care companies, including the fact that they have been issued with a court order, there are no viable solutions that the councils or health board can offer at this time. We would like to recognise and thank the staff within the care homes for their commitment to delivering high-quality care and highlight that the quality of care has at no point been a contributing factor to this difficult decision."
Ms Bibi said: "We would like to thank all our staff for their dedication and hard work. It is with a heavy heart we find ourselves in this difficult circumstance. To be clear, we have worked with authorities during this situation where our accrued service fees have been advanced to help meet costs. The councils did not pay staff." Ms Bibi clarified that "the councils have brought forward remittance dates and the care homes have paid staff from the fees due to the care homes."
In a previous statement to WalesOnline, Ms Bibi said that Pontypridd Care Centre had been hit by rising costs while the fees paid by local authorities had not kept up. She said: "Current inflation rate is 10.10% the highest in 40 years. Care home operations costs have increased by a catastrophic 500-600%. Yet fee income from the councils has not even been proportionate."
Ms Bibi is the current director of another care home in Wales, Manor Park Care Centre in Wrexham. A spokesperson from Wrexham Council said: “We are awaiting updates from CIW and the provider. The quality of care at the home has not been a concern and are working closely with the relevant people to assess the future of the service.”
Director of primary care, community and long-term care for Hywel Dda University Health Board, Jill Paterson said: “We know that receiving this news will be distressing for people and we are sorry that no other option is available, but we would like to offer reassurance that we will do everything we can to make sure that people are well looked after and are supported to find a new home as soon as possible. We will also be working with staff to support them to find alternative employment, should they wish to do so.”
In addition, Care Inspectorate Wales has issued an improvement notice to the care companies with a view to cancel their registration – and closure – should they fail to make the required improvements within a specified timeframe. A spokesperson from CIW said: “CIW has been working closely with local authority commissioners. We expect the provider to comply with issues set out in our improvement notice in order to maintain its registration.”
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