Latest update following collapse of Southern Cross posted below.
Briefing to Elected Members on the Current Position of Southern Cross
Date: 11 July 2011
- 1. Background
1.1 Southern Cross is the UK’s largest Care Home operator with 8 Care Homes within Glasgow.
1.2 On the 11 July 2011, the Provider announced that it intends to wind up its operation following the notification of their intention to leave the Southern Cross Group. The Provider has intimated that it will no longer exist after the period restructuring at the end of October 2011.
- 2. Glasgow Service Users
2.1 There are 8 Southern Cross care homes within Glasgow with capacity to support 497 individuals. Currently there are more than 400 service users receiving support within Southern Cross’ Glasgow based care homes. Glasgow City Council placed approximately 335 of these individuals with the remaining 86 service users placed by external Local Authorities.
2.2 In addition to this Glasgow City Council has placed circa 176 individuals in Southern Cross Care Homes across the UK (173 out with Glasgow but within Scotland, and 3 out with Scotland).
2.3 Glasgow City Council’s total spend with Southern Cross is c£10.5m (c£7m within Glasgow based services and c£3.5m out with).
- 3. Business Position
3.1. There are a number of landlords within the Southern Cross group. The biggest in the UK has intimated that they will continue to run their business and will be negotiating with other care providers to provide care in their homes. It is anticipated some smaller landlords will continue to work in partnership with this landlord.
3.2. The exact position with the other landlords is unclear but they will also all be actively seeking other care providers to provide care in their homes.
3.3. The National Contingency Planning Group has been working with key stakeholders to ensure as smooth a transition as possible. There are regular meetings of this Group and senior management from Southern Cross will be present at the next meeting to give further update on the current position.
3.4. Cosla does not anticipate any closures of care homes in the short term and will continue to demand continuity of care from landlords and providers. The default position is to assume that the market will deliver a solution.
3.5. SCSWIS (formerly the Care Commission) is also meeting regularly with the Provider to ensure that there is a seamless transition to another care provider
- 4. Council Position
4.1. The Council is represented on the National Contingency Planning Group and continues to work closely with Cosla, Scottish Government, SCSWIS and other Councils and the Provider to ensure consistent care continues to be delivered by Southern Cross and that any disruption to service users is minimal.
4.2. A Glasgow Contingency Planning Group chaired by David Williams, Assistant Director, Social Care Services meets weekly to ensure that there is a well coordinated response within the Department. Every service user within Glasgow has an allocated care manager. There is programme of reviews organised for those service users who have not had a review in the last 6 months.
4.3. Active contract management is also taking place with regular visits to the homes with regular feedback also being sought from home managers. These processes will highlight any concerns regarding the care provided in these homes.
4.4. Regular updates to briefings will be provided as more information becomes available.