Saturday 17 November 2018
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Number of social care providers going bust doubles

Insolvencies in the health and social care sector are up by 49% in the first half of this year following council spending cuts.

The latest figures show that health and social care is one of the areas worst hit by public spending cuts. Insolvencies in defence and education rose by 71% and 39% respectively.

One hundred and six health and social care providers went bust in the first six months of 2010 compared with 71 in the same period of 2009, figures compiled by accountancy firm Wilkins Kennedy showed.

However, overall insolvencies in the UK fell by 5%.

Anthony Cork, director at Wilkins Kennedy, said: "While the real cost-cutting that this government has threatened has yet to take place we are already seeing a wide range of companies fail because of delayed contracts."

Cork added that he expected the spending review to bring further pain for providers.

Ancyra Health, the New Victoria Hospital and Cliftonville Nursing Homes all became insolvent in the second quarter of 2010.

Source Community Care