Local authority commissioners have been told to plan for alternative arrangements for people currently served by Allied Healthcare, one of the UK’s biggest home care operators.
Some 84 local authorities have been told that there is a “credible risk of service disruption” after Allied Healthcare was unable to provide the CQC with a realistic financially backed plan securing operational sustainability.
Allied Healthcare is one of the UK’s largest home care operators and is one of 59 adult social care providers within CQC’s Market Oversight Scheme. CQC’s Market Oversight function monitors the financial health of the largest and most difficult to replace providers of adult social care in England because of their size, which represents about 25 per cent of the adult social care sector. Allied Healthcare employs over 8,000 people, and has more than 80 branches across England.
Andrea Sutcliffe CBE, Chief Inspector of Adult Social Care at the Care Quality Commission (CQC), said: “Allied Healthcare announced its intention to apply for a Company Voluntary Arrangement (CVA) in April this year to restructure its debts.
“Allied Healthcare has been able to confirm funding until 30 November 2018. However, we have not received adequate assurance that the company has, or will have, the ongoing funding or new investment necessary to ensure the business can operate beyond this date. We consider there to be a credible risk of service disruption.”
A spokesperson for Allied Healthcare said: “We are surprised and deeply disappointed by CQC Market Oversight’s decision, which we regard as premature and unwarranted: we have secured a potential replacement of our credit facility.
“By issuing a Stage 6 notification, the CQC is putting significant pressure on already stretched and pressurised local authorities and clinical commissioning groups.”