Stockton-on-Tees Borough Council

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Cabinet Decision: 8th September 2011
Title of Item/Report
Southern Cross Healthcare
Record of the Decision
Cabinet considered a report relating to Southern Cross Healthcare.

It was explained that, in July 2011, Southern Cross Healthcare announced that it would cease providing care home services after October 2011 and suspended trading in the company's shares. This was a matter of the corporate governance requirements for the UK Listing Authority and did not have an impact on the day to day trading or operation of the care homes themselves. Until alternative operators were engaged, Southern Cross Healthcare would continue to trade as a company and work with landlords and local authorities to manage the process of transfer to other operators. The Care Quality Commission had agreed to make additional resources available to ensure that new providers were registered in a timely manner. New providers would also have to undertake the council's care home accreditation process.

Members noted that the Southern Cross Healthcare care homes operating in Stockton on Tees were:

• Wellburn House, Wellburn Road, Fairfield, TS19 7PP
• Allington House Marsh House Avenue, Billingham, TS23 3ET
• Hadrian Park, Marsh House Avenue, Billingham, TS23 3DF
• Stockton Lodge, Redhill Road, Roseworth, Stockton-on-Tees, TS19 9BY
• Piper Court, Sycamore Way, Stockton-on-Tees, TS19 8FR
• Victoria House, Bath Lane, Stockton -on-Tees, TS18 2DX
• Ayresome Court ,Green Lane, Yarm, Stockton-on-Tees, TS15 9EH
• Highfield Nursing Home, Harker Close, The Meadowings, Yarm, TS15 9XH

Cabinet was provided with details of the type of care home provision, the landlord of each care home, the new operator, occupancy and the current overall vacant capacity in Stockton care homes.

It was noted that discussions were continuing between the council, the Primary Care Trust (PCT), Southern Cross Healthcare, their landlords and prospective new care providers to ensure the care of residents was not disrupted. The Council had been given assurances that the care homes in Stockton were considered viable businesses. Letters had gone to all residents of Southern Cross Healthcare care homes in Stockton and council officers had worked with colleagues in other councils to ensure that residents placed out of area were included in the relevant communications. Information was also available on the council website. All Members had received communication by email and the Leader of the Council and the Lead Cabinet Member had received regular updates on progress. The Council and PCT communications departments had worked together to manage external communication. Council and PCT officers had collaborated regionally to identify and address potential risks to the continuity of service provision.

RESOLVED that the report be noted.
Reasons for the Decision
To inform members of issues relating to Southern Cross Healthcare.
Alternative Options Considered and Rejected
Declared (Cabinet Member) Conflicts of Interest
Details of any Dispensations
Not applicable
Date and Time by which Call In must be executed
Midnight on Friday 16 September 2011

Date of Publication: 12 September 2011

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