A Knowsley Council cabinet member has spoken out about the crisis in adult social care after it emerged a £400k care contract was given to a company in financial difficulty due to a lack of other options.
The decision to appoint the company came after the council was forced to terminate a contract with the first company it chose to manage 10 intermediate care beds at Hillside care home in Huyton after it received an inadequate CQC inspection.
The council then took the decision to award Qualia Care Ltd – which is in administration and has a CQC rating of ‘requires improvement’ – the £400k contract after exhausting other options.
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According to a delegated decision report released last month, the council initially tendered for 22 intermediate care beds, awarding 12 to one company and 10 to another.
The company awarded the 10 bed contract were subsequently the subject of a CQC inspection which found serious failings, resulting in the worst possible rating by the care quality watchdog.
The care home provides “short term, intensive support with nursing care (if required) and access to therapy support” aimed at improving the physical and mental functioning of vulnerable adults as part of a process of moving them back towards independent living.
The original tender for the beds was carried out in December 2021, when three bids were received with only one being valid and resulting in the 10-bed contract being awarded. A further tender was carried out in February 2022 for the remaining 12 beds.
However, in October 2022, the dire CQC inspection result emerged, leading the council to terminate the contract and seek other options, including contacting the second highest bidder – which said the contract would not be viable citing the low council rates as one of the problems.
Due to a “severely depleted capacity at the current time” and the lack of interest in previous tenders, officers took the decision to appoint Qualia Care Ltd despite its financial difficulties.
Officers state in the report: “Awarding a contract to a company under administration would normally be avoided. However, given the urgency of the requirement and the inability of the wider market to be able to meet our needs at this time, this is a balanced risk in proceeding with this award”
The report adds that the company, whilst in administration, has a rescue plan in place and intends to “invest substantially” in the care home.
Commenting on the decision, cabinet member for adult social care Cllr Del Arnall said that while the council “would prefer not to be in a position where our ‘best possible’ option is to place a contract with an organisation in administration” the risk of being without urgently needed intermediate care beds was “too great”.
She added that the situation was “yet another timely example of the crisis we are seeing in adult social care across the UK” and called on the government to take “responsibility” to provide fairer funding.
Cllr Arnall said: “The provision of good quality Intermediate Care is absolutely essential in supporting our NHS and ensuring our residents get the support and care they need in the local community.
“Qualia Care Ltd has a robust financial recovery plan in place but clearly, we would prefer not to be in a position where our ‘best possible’ option is to place a contract with an organisation in administration.
“However, that is the situation we are in and put simply, the risk of not taking this action – and not having the additional beds we need when our NHS is in crisis – is just too great.
“This situation is yet another timely example of the crisis we are seeing in adult social care across the UK.
“Despite repeated promises by Government to provide long term funding for adult social care, this has not been forthcoming. As a result, care providers are struggling to remain viable at a time when their services are more crucial than ever.
“Ultimately this crisis is not one that local authorities can solve alone. I think it is really important that the issues are not only acknowledged more widely but that some responsibility at a national level is taken, and that a fair and long term funding settlement is provided to local authorities to support this essential sector.”
Qualia Care Ltd was also contacted for comment.
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