A home care provider used by Merton Council is at risk of not being able to deliver its services to elderly and vulnerable people after the end of November, according to the Care Quality Commission.
The council did not say if it has contingency plans in place if Allied Healthcare can no longer provide its services, but the firm has insisted its operations are “sustainable and safe”.
Allied Healthcare restructured its debts earlier this year with a Company Voluntary Arrangement, blaming a “challenging” environment for the social care sector.
Andrea Sutcliffe CBE, chief inspector of adult social care at the CQC, explained she and her colleagues have been monitoring the situation.
She said: “Allied Healthcare has been able to confirm funding until November 30, 2018.
“However, we have not received adequate assurance that the company has, or will have, the ongoing funding or new investment necessary to ensure the business can operate beyond this date.
“We have encouraged Allied Healthcare to provide us with a realistic financially backed plan to support the future sustainability of the business, and given them every opportunity to do so, but they have failed to provide adequate assurance regarding future funding.”
The CQC wrote to all 84 councils that have a contract with Allied Healthcare for home care services, including Merton.
A council spokeswoman said: “Our highest priority is the health and wellbeing of our residents, and we are working closely with Allied, The Care Quality Commission and all our partners to ensure that we continue to provide the highest level of care to our residents.”
A statement by Allied blasted the CQC’s warnings as “premature and unwarranted”.
It reads: “We have demonstrated throughout our discussions with the regulator that Allied Healthcare’s operations are sustainable and safe, that we have secured a potential replacement of our credit facility, that there is no risk to continuity of care and that we have a long-term business plan in place that will continue to deliver quality care across the UK.
“The CQC has disregarded these assurances in spite of the robust evidence we have provided.”
The care provider has been contacted for further comment and asked what specific services it provides in Merton.
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