Five care chains thought to make £150m a year for low-rated homes in England

theguardian.com:

Five of the largest private care chains are taking £150m a year in taxpayers’ money for places in English elderly care homes rated inadequate or requiring improvement, including some that are “not safe”, the Guardian has estimated.

The leading earner from public funds is HC-One, a chain of 285 care homes majority-owned by a US private equity company, according to analysis of council spending records.

It was paid an estimated £50m in 2022 by town halls to look after people in homes rated in the Care Quality Commission’s (CQC) worst two categories, according to estimates from public spending records.

In 2022 the London borough of Southwark spent more than £3m on beds at HC-One’s Tower Bridge Care Centre, which was rated “inadequate” after inspections in August.

Inspectors ruled it “not safe” and “not well-led”, with problems including residents’ medicines being missed and out-of-date drugs being used. Inspectors found the home was understaffed and that people were overworked.

The company was formed from the collapsed Southern Cross chain and does 75% of its business with councils that fund care for people without the wealth to pay their own bills.

Four Seasons Health Care, meanwhile, earned an estimated £38m from councils for places in homes judged to be inadequate or requiring improvement. The company is currently operated by administrators after a previous owner, the private equity firm Terra Firma, racked up huge debts. Since 2019, the company’s £625m debt has been controlled by a US hedge fund manager.

The extent of the major private firms’ earnings from public funds emerged after the Guardian revealed this week how English councils have altogether spent close to half a billion pounds in the past four years on “inadequate”