'More could follow' after Southern Cross collapse
People paying for care could see more facilities for the elderly close down in the wake of the demise of Southern Cross, a social care consultancy has said.
Laing and Buisson said care providers could face "sink or swim" decisions this year and the next, after a survey revealed that the majority of local authorities in England have either frozen or reduced budgets for care home placements.
William Laing, chief executive of Laing & Buisson, said the care home sector will need to think hard about how it reacts to significant cuts in local authority fees.
"Operators can ramp up legal challenges, but these are expensive and risk being reversed in the next fee setting round," he said.
"They can lobby councils more intensively, but are likely to be given short shrift in the light of other valued local programmes being sacrificed."
Recently, Laing & Buisson said the health cover market will continue to suffer from the economic depression experienced in 2010 this year.
Posted by Nigel Murphy