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PJ Care: “Conciliatory fee negotiation is the key to survival”

Neurological care provider PJ Care says conciliatory fee renegotiation is the secret to surviving the current cost of service crisis.

In guidance for care home providers, chairman Neil Russell (pictured) said: “We are looking to renegotiate contracts where we can. Usually these are contracts that have been in place for some time and the pricing has failed to match inflation.”

He says the key to success is for both sides to understand the pressures on each other.  “Agreements are being reached that ensure we are not being expected to provide care at a loss.”

PJ Care provides specialist neurological care to 183 residents in Peterborough and Milton Keynes. The company has been planning for cost increases since before Brexit and will pay junior staff the real living wage. All staff will also receive a winter fuel bonus.

To fund these initiatives, the company has reduced profit margins, and removed pay rises for senior management and directors this year (for directors this is the third year in a row).

He says: “We are not sitting back and complaining about a lack of investment from government and local authorities, but are working proactively with funders and commissioners. This is an ongoing process, but without engaging with commissioners and local authorities etc. there will be no further [fee] increases.” 

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