News


Care UK agrees to pay £1m in resident refunds after CMA inquiry


Care UK is to pay more than £1m in refunds for NHS-funded residents at the provider’s premium homes in England deemed to have paid an unfair additional fee towards essential care. The refunds are a result of a Competition


and Markets Authority (CMA) investigation launched in 2017 into a number of care providers due to concerns that some of the contract terms and/or practices were illegal. The CMA considers that Care UK broke consumer protection law by charging an additional fee because it contravenes NHS rules. The fee, which in most cases was above £300 per week, was charged to certain residents receiving a special type of funding from the NHS called ‘Continuing Healthcare’. Under NHS rules, residents funded through


Continuing Healthcare must not be required to pay towards their essential care. Following the CMA’s action, Care UK has


agreed to offer repayments to NHS funded residents whose fees went towards their essential care, and more than 160 residents at over 20 Care UK premium homes will be offered compensation by the end of November. The CMA said the majority of those


affected will receive a pay-out of more than £1,000, with some receiving substantially more based on their circumstances. The refunds apply to those that paid the additional fee from 1 October 2015, as that is when the CMA’s redress powers came into force. In addition, Care UK has signed a formal


undertaking to stop charging this additional fee altogether for residents at its homes. “Older people receiving Continuing


Healthcare funding are some of the most vulnerable in our society and should not be expected to pay extra fees for their essential care. That’s why we’ve worked hard to secure refunds from Care UK for those who paid these unfair fees,” said CMA executive director of


Residents from Birkdale Park in Merseyside enjoy a day out on nearby Southport Pier using their care home rickshaw. Carers have established a plastic safety screen between the two passengers to allow a resident and relatives enjoy trips out together.


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enforcement Michael Grenfell. “We are pleased to see Care UK committing


to make repayments as quickly as possible, and to stop charging this additional fee altogether, which is good news for all current and future residents,” he added. Care UK said the CMA’s action to prevent


the fomer offering families the option of placing their loved ones in a premium home by making a personal contribution in addition to NHS funding is "a backwards step in terms of consumer choice". “The number of families this affects within


Care UK has always been very small and, as such, we agreed to settle with the CMA to enable us to focus on the more pressing challenges facing the sector at present," a spokesman added. "Over the period we offered this option, Clinical Commissioning Groups were supportive of having access to additional homes, and the small number of families involved welcomed the additional choice it provided. "The enhanced fee covered a range of benefits enjoyed by residents in a premium setting including spacious en-suite rooms, on- site facilities such as cafes and cinemas, a wide range of lifestyle activities and a premium dining experience. These families always had the option of more modest, fully funded homes as an alternative." The spokesperson added: “In light of unclear NHS guidance and the widespread nature of these fees across the sector, we reject the CMA’s suggestion that they were unfair. "In reaching this settlement, we do not


accept that we have breached any rules or misled anyone taking a place with us. We have done our best to be transparent with all involved, and as these fees are common practice with a great many other care home providers, we are at a loss to understand why the CMA has singled out Care UK.”


News inbrief


n Exemplar Health Care has kicked off a £2.9m refurbishment of a Hull care home due to open in April. The Marmaduke facility will provide ground floor living for 18 adults living with dementia, acquired brain injury, complex mental health conditions and physical disabilities.


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n Glasgow contractor CCG has started construction work on the Livilands Luxury Suites care facility in Stirling for Morrison Community Care Group. The 50-bed scheme is due to be operational next year.


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n Signature Prime Property has lodged plans with Wealden District Council to build a 64-bed nursing home in Ringles


Cross near Uckfield in East Sussex. ....................................................................................


n Two Shaw Healthcare care homes in Liverpool, Brushwood and Millvina, are to remain open until the spring following a deal struck with Liverpool City Council while talks continue to find another provider.


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n Dunluce Healthcare has opened a £2m extension of its Oakmont Lodge in Bangor in north Wales. The new wing provides 24 bedrooms, bringing the total number of beds at Oakmont Lodge to 80.


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n Target Healthcare REIT plc has agreed a £15m sale and leaseback deal with Ideal Carehomes for the 66-bed Launton Grange care home in Bicester in Oxfordshire.


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n S5 Care has acquired the George Hythe House care home and adjoining Holmfield dementia day centre from Nottingham Community Housing Association for an undisclosed sum.


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n Contractor Clegg Construction has completed the 64-bed, £6m Lonsdale Mews care home in Quorn in


Leicestershire for provider Care UK. ....................................................................................


n Scottish care provider Meallmore is preparing to open its luxury Greenan Manor care home in Ayr that will


accommodate 52 beds over two floors. ....................................................................................


n Urban Pulse Property Investments has filed plans with Derry City and Strabane District Council for a 57-bed care home and 53 assisted living units on the site of a former school in Londonderry, Northern Ireland.


www.thecarehomeenvironment.com • November 2020


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