Powys County Council is to create a local authority trading company to run the 12 council-owned residential care homes from next May.
The council’s homes have been run by Bupa for the last 15 years but the contract will expire in May 2017.
Councillor Stephen Hayes, cabinet member for Adult Services said: “The decision to commission Bupa to deliver our residential care on our behalf was the right choice at the time, and they have successfully delivered a high level of care over this period of time.
“However the financial and demographic pressures alongside national and local policy drivers mean that the council’s current provision of residential and nursing care would not be sustainable in the future. The current model would not deliver the required levels of service within available resources.”
A spokesperson for Bupa Care Services said: “We are proud of the high quality of care that we deliver in the 12 homes we operate in Powys, which we lease from the council. We were surprised to learn in the local media that the council may set up a company to run these homes after the current contract expires next May.
“Our priority is always the wellbeing of our residents. We are speaking to them, their families and our people to update them and reassure them that nothing is going to change immediately. We will continue to deliver the high quality of care residents expect of us.
“No final decision has been made and the council will take the next few months to review arrangements and decide what to do next.”