My news feed this morning included a story about a local care home in Guildford facing the threat of closure.
Redwood Care Centre in Guildford, owned by Shaw Healthcare, is reportedly closing as a result of staffing and financial difficulties.
This means 40 elderly residents will need to find alternative accommodation when the home closes on 31st March.
The high profile closure of Southern Cross care homes a few years ago highlighted the risks involved when care homes close.
Last summer, a report by Company Watch found that one in three UK care homes risked going into administration as a result of their unsustainable levels of debt.
When a care home closes, the process of moving a resident to a new home at short-notice can be distressing and even harmful to their health.
Part of the process for choosing a suitable care home should include taking a close look at their company accounts and checking they are financially viable.
This is something we offer to our clients as part of our care fees planning advice, helping them review company accounts and check for any obvious ‘red flags’, such as high levels of debt or unsustainable trading losses.
It sounds like Redwood Care Centre in Guildford could be rescued in the future by another care home owner, but this is unlikely to happen in time to prevent disruption to the residents there.
Do speak to us if you have a relative going into a residential care home and need to consider your various options.
