“Poker played with peoples lives !”

Four years ago, in 2011, my blog followed the demise of Southern Cross which was then the largest care home operator in the UK.   (You can read the full story by clicking on “Southern Cross” in the TAG CLOUD).

It was optimistically conceived in an ever-growing population of frail older people who were funded by the State.   Eventually this rapidly assembled and dangerously financially leveraged corporate empire collapsed in on itself.

I likened the whole process to a poker game, where money was the only driver and the residents were just cards to play in the high stakes game.     When Southern Cross went bust, the spoils were divided up between the remaining players and the second largest care home operator — Four Seasons Health Care — inherited the largest chunk of homes to pay off Southern Cross debts.

Sadly, the market fundamentals had not changed and Four Seasons were just as highly indebted.      I forecast that it was likely to happen all over again and sure enough it has.   Four Seasons has £500m of debt and annual interest bills of £50m.    Occupancy levels are falling and Social Services’ fees are being squeezed, so the outlook doesn’t look good.    The new minimum wage may just be the tipping point for yet another collapse.

The poker game is still being played out to see if Four Seasons becomes the next Southern Cross.    That’s 22,500 old people who have an uncertain future in 470 care homes.

pokerV3 (4)

It is high time Government accepted that social care of the elderly is too important to be left to a card game of chance.    We need a 21st century positive outlook to later life which offers all older people a secure and caring future.    This can only come about if politicians are honest with older people about the limited state funding that is available to pay for care.

In turn that means that most older people will have to cash in the equity in their own homes if they need to pay for care.    The Government’s key future role should be to encourage greater provision of retirement housing and facilitate less expensive and more trustworthy models of equity release.

This entry was posted in Residential Care. Bookmark the permalink.

One Response to “Poker played with peoples lives !”

  1. As we speak Oh Wise one! things are overtaking events, and just by reading the media headlines, and the government of the day, and the various departments of government responsible for care and help, support ect. in the community, we are all being required to consider by enuendo, ‘what if’ and those bedroom tax situations and communities living in three bedroom houses, whom are now elderly, and, not infirmed, or less mobile-but ‘what if’?
    It is a big ask, and the retirement years are shortened by debt to repay, or pay off the mortgage, WHO has the bigger expectations in life?, the younger started couple? single parent, or the elderly, with respect to How one can invest their personal money wisely to ensure a financially safe future? it is a riddle that has to be solved, and the elected politicians both in central and local government, as well as Whitehall ‘Auntie’ have a serious roll to play, and point out the objectives, and encourage us all to consider each othets predicament, and yet remain as indepentently as possible, financially free from state aid.
    The NHS Budget, the serious problem of recruitment of staff within the NHS and the Social care industry of a position in which the staff attain the required traing standards, and the general populous accept that they reward the associated staff with an acceptable income.
    It is no longer the private industry, verus the public industry and the pull of unions against the employers/investers? it is more of a family problem, and with disfunction family groups, remote/divided living amonst family person members, ‘How does society’ sustain support, for all the individuall members within that society?
    Answers on a postcard please- Remember local government and central government can be all caring and powerful, if one cares what may be about to happen in the future- Care and understanding and compassion is required! ‘not dog eat dog’ Can you influance events? did or can you vote with both head and heart, and not just one of those attributes?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s