Care homes threatened with closure are to be "maintained", it has been announced.
The Health and Social Care Board has reassured residents at Southern Cross care homes in the Province that their well-being "will be maintained", despite the announcement that the care home operator is to close down.
The cash-strapped firm, which runs 26 residential homes looking after 1,100 people in Northern Ireland, is to close after landlords refused to restructure rental agreements.
The company has 752 homes across the UK and 31,000 residents, including two homes in the Dungannon borough.
A spokeswoman for the Health and Social Care Board said that an active daily monitor of developments relating to Southern Cross Healthcare, which is one of the major providers of residential and nursing care throughout the UK, was taking place.
The company had been trying to reach a deal with its landlords because it was struggling to pay the rent.
Southern Cross is the UK's largest care home operator but ran into a financial crisis brought on by a rising rent bill and lower fees as occupancy rates declined and local authorities reduced the number of patients they placed with the group.
For some weeks it has been locked in negotiations over a restructuring of property arrangements.
Landlords of 250 homes have agreed to take them back and run them themselves but negotiations are still ongoing with the owners of the other 502 homes, a process that could take three to four months.
The firm said final details of the plan have yet to be settled but all payments to trade creditors and staff are to be maintained to help with the transition to new owners or operators and keep continuity of care.
It negotiated a 30 per cent rent cut for four months while the talks continued but though some landlords had been expected to take back their properties, the announcement that all had decided to walk away was a surprise.
Chief Executive Jamie Buchan is to lead the restructuring and Southern Cross said he will work closely with all interested parties to ensure "that the welfare of residents and staff is maintained".
Source: Tyrone Courier
Date: Wednesday 27 July 2011