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The Guardian - UK
The Guardian - UK
Politics
Hettie O'Brien

The great care home cash grab: how private equity turned vulnerable elderly people into human ATMs

Illustration of a a white-haired woman's head morphing into a pair of hands holding a bag of money with a dollar sign on it

On a spring morning in 1987, a 30-year-old man named Robert Kilgour pulled up beside a row of foamy cherry trees in the town of Kirkcaldy, on Scotland’s east coast, to visit an old hotel. The building was four storeys of blackened Victorian sandstone. Kilgour was a big man, a voluble Scot with a knack for storytelling. He already owned a hotel in Edinburgh but wanted to branch into property development and was planning to turn this old place, Station Court, into apartments. A few months after he completed the purchase, however, the Scottish government scrapped a grant for developers that he had been counting on. He had just sunk most of his personal savings into a useless building in a sodden, post-industrial town. He urgently needed a new idea.

Care homes weren’t so different from hotels, Kilgour thought. And the beauty was, their elderly residents were unlikely to get drunk, steal the soap dispensers or invite sex workers back to their rooms. Turning Station Court into a care home seemed like the best way out of a bad situation. Kilgour arranged a bank loan and in June 1989 he launched Four Seasons Health Care, taking the name from a restaurant in Midtown Manhattan where he had once dined.

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