Council chiefs have been urged to rethink plans to spend £60m replacing elderly care homes with new support hubs for people with dementia.
North Yorkshire Council’s plans would see seven homes owned by the local authority replaced within five years, with the first built in the Harrogate and Scarborough areas.
The Independent Care Group (ICG), which represents care providers in North Yorkshire and York, has however urged the authority to put the proposal out to tender to allow private companies to bid to run the hubs.
In a letter to the authority, ICG chair Mike Padgham said that at a time when the council was under financial pressure, it was essential to consider whether the investment was necessary and if independent care providers could deliver the hubs more efficiently.
“Investing in the existing independent sector would be a more effective use of resources, generating greater economic returns and reducing long-term costs across the health and social care system.
“Historically, local authorities moved away from in-house provision because commissioning from the independent sector delivered better value for the public purse. Independent providers bring existing infrastructure, economies of scale, and specialist expertise, making them best placed to deliver these services efficiently.”
Last month, the care industry held a day of action, including a rally at the Houses of Parliament and meetings with local MPs, to call for increased funding for the sector amid concerns its pleas for help were ignored by the government in its latest budget.
Professor Martin Green OBE, chief executive of Care England, a national representative body for the adult care sector, added: “Rather than creating new services, the council should be focusing on supporting and investing in the independent sector it already has, helping to build capacity and improve care.
“Choosing to start a new service now risks sending the wrong message, suggesting a lack of confidence in the market when it is more important than ever to strengthen and sustain it.”
In his response to the ICG, Richard Webb, the council’s corporate director for health and adult services, said most of the authority’s current homes dated back to the 1970s and 1980s and were in “clear need of modernisation”.
He added: “The most effective, value-for-money way to upgrade them is to build new facilities.
“In doing so, we are mindful of current gaps in the care market, future predicted growth in demand for care provision and the need to ensure good value for taxpayers’ money.”
Mr Webb said 393 beds would be provided from the investment — 250 in new, council-run homes and 143 in the independent sector.
He added: “This approach aligns with our long-standing commitment to be a direct care provider, which has always been unambiguous and clear.
“Given the rural nature of North Yorkshire and the complexity within local care markets, we will always reserve the right to provide services directly, and to intervene in the market, when and where necessary.”
The council says nearly £900,000 was spent last year on servicing and maintenance at its existing elderly people’s homes in Bedale, Filey, Harrogate, Pickering, Selby, Skipton and Pickering.
The council has calculated that almost £10m would be required over the next five years to maintain safe standards at the seven homes.
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