On 5th November 2018, the CQC issued a Stage 6 notification to local authority customers in England with regard to the ongoing operation of services provided by Allied Healthcare. This notified local authorities in affected areas that it could not guarantee that Allied Healthcare would be able to operate its services beyond 30th November and that they should begin contingency planning for the safe transfer of services.
Prior to the Stage 6 notification and until the 30th November deadline, Allied Healthcare have worked tirelessly to secure a new financing arrangement from the banks. It was clear by the 15th November, due to the Stage 6 notification, that Allied Healthcare would not be able to secure the necessary financing arrangement, however it did secure an extension of funding until the 21 December. As a result of this development, Allied Healthcare advised customers that it was seeking a sale of its business and/or transfer of services and that customers should continue to develop contingency plans should this process not succeed.
Between the 16th November and 30th November, some local authorities and CCGs have terminated contracts with Allied Healthcare and transferred services. The Board of Allied Healthcare reached an agreement with Health Care Resourcing Group (trading as CRG) to acquire Allied Healthcare’s trading assets, with ownership and full service provision transferring at 4pm on 30th November 2018. CRG are privately owned and managed, and have delivered direct healthcare and home care services for over 18 years.
Services to continue in full
With the seamless transition of ownership completed, Allied Healthcare is continuing to provide the safe and effective delivery of services to all customers and service users, especially important as we approach the festive period and beyond. This also means that vital care workers and branch staff responsible for overseeing care visits will remain in post with the same pay and conditions as before.
Despite this positive news, Allied Healthcare understands that a number of local authorities and CCGs are still considering proceeding with their contingency plans, which would see them transfer services to another provider, or bring services in house.
With long-term financial arrangements in place and a clear commitment to the continuation of high quality services, Allied Healthcare would urge local authorities to consider the potential disruption that could be caused by transferring services, particularly at this time of year.
CRG are confident that under Allied Healthcare’s new CEO, Narinder Singh, all stakeholders can be reassured that there will be no break in service.