Southern Cross on sick list as losses double to ￡44m

摘要

Britain's largest care home group -Southern Cross Healthcare - faces an uncertain future after it saw losses more than double. The group announced an operating loss of ￡44.1m in the year to 30 September, compared with ￡12.7m in 2009, although the firm saw revenue increase by 2.3% to ￡958.6m. Government spending cuts are expected to hit the company hard, since councils and the NHS fund around 80% of its residents. Chief executive, Jamie Buchan, said the company was negotiating with many of its landlords in an attempt to cut rents. 'Our forthcoming negotiations with local authorities on fee levels will be critical if the gap between the true cost of delivering care and the fee levels which many authorities are prepared to pay is not to widen,' said Mr Buchan.