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Southern Cross denies financial pressure is affecting care

Chris Jackson | 10:45 UK time, Monday, 7 February 2011

When we last covered problems at we received our biggest ever response. That was in November 2010 when the company apologised after we highlighted four cases of poor care.

The emails and letters were not just from other families concerned about the way their elderly relatives were treated, but also from staff within Southern Cross.

In our follow up which is broadcast on Monday, 07 February 2011 at 7.30pm on 91Èȱ¬1, we highlight those concerns and examine the financial background to the Darlington based company.

Southern Cross expanded quickly after it bought care homes and then sold them on when property prices rose. It continues to run the homes, but is now paying rent.

After the collapse of the property market Southern Cross was left with huge rent bills and little cash in the bank. The share price fell from 605p in November 2007 to a recent low of just over 18p. On Friday, 04 February 2011 it stood at 22.5p.

Staff told us it was commonplace for broken equipment not to be replaced or fixed quickly enough.

Southern Cross has 37,000 residents in more than 750 homes making it the largest provider in the country.

Regional Director Phil Whitaker denied financial considerations were affecting care at its homes:

"You've alluded to some cases in your programme, short term issues that the senior team was not aware of; issues that were resolved very quickly when we were aware. You always appreciate it takes time to get parts, to do things, but we maintain our buildings. We invested over £8m in the fabric of our buildings in the North of England last year. All our key kit works and will continue to work."

If you want to comment on this story please email me directly chrisjackson@bbc.co.uk

Southern Cross says if staff, residents, relatives or friends have any concerns they are encouraged to report them. There is a special freephone helpline run by . The number is 0808 880 10310 and it is open from 09:00 to 19:00, Monday to Friday.


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