Methodist Homes (MHA) will no longer have any care homes in Scotland, and will stop operating 10 in England and Wales, the charity has confirmed.
In 2019, the charity began a review looking at the long-term sustainability of all its services, which though disrupted by the pandemic has now been completed.
Sam Monaghan, chief executive at MHA, wrote a blog that reads “a number of difficult decisions” have been made.
This includes the decision to withdraw from 10 of its 88 care homes, two of these are owned by local authorities, and the remaining eight are now being put up for sale.
Monaghan said: “We have been speaking with specialists in the care market and are confident that buyers will soon be found for these homes.
“When a buyer is found, the new owner will take responsibility for the home, including residents and colleagues. If, however, in the unfortunate situation that a buyer can't be secured, I can’t rule out the possibility of some closures.”
He added that where possible homes will start to transfer to new owners by early 2024, and affected staff at these homes will be given the opportunity to transfer to the new provider under the formal legal process known as TUPE regulations.
“If we find ourselves having to close any care homes, we will support residents and their families to find new homes and affected staff to find new roles inside MHA, if there are any suitable opportunities and people want to stay with us or help them to find a new job elsewhere,” he said.
Money raised from the sale of the care homes will be used to invest in remaining homes and schemes and in new services.
“As it has always done, MHA will continue to review and assess our homes and schemes to ensure they meet and adapt to people’s changing needs, ensure financial sustainability, and remain valuing places to live,” Monaghan’s statement added.
MHA to close all Scottish services
MHA has also placed Auchlochan Garden Village in Scotland into administration and the administrators will take responsibility for the two care homes at Auchlochan.
A statement from the charity said MHA took over Auchlochan in 2009 to prevent it from going into administration, “however, the operating model for Auchlochan has a range of complex legal, operating and funding issues across the village, which MHA has been unable to resolve, despite investing considerable resources over the past 14 years”.
Auchlochan will be able to draw on a contingency fund of £5m from MHA.
The changes in Scotland also include MHA withdrawing from three smaller retirement living schemes, with a view to selling these to alternative providers. Together, these changes mean that MHA will no longer have any services in Scotland.
The chief executive added: “These changes are being made to make sure MHA has a strong and viable future. This year we are marking our 80th anniversary of providing care and support for older people, and these changes will enable us to be in the best shape possible to continue to do this vital work.”
Charity Commission data for the financial year ending 31 March 2022, puts the charity’s total income at more than £250m.
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