Care firm pulls out of £8million contract in Plymouth

A care firm has pulled out of an £8m five-year contract to help people at home after they leave hospital in Plymouth.

Gemcare South West was given the joint Plymouth City Council and Devon NHS contract in September to take over at the start of December.

The new Independence@Home service combines the city's rapid discharge service with the council’s reablement contract which expires on December 2.

But the council’s cabinet - made up of senior members of the ruling Labour group - heard on Tuesday the care firm now did not want to go ahead.

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Members agreed in principle for the council to take control of the service with day to day management support from care partner Livewell Southwest.

The final decision was delegated to be taken after financial checks have been carried out.

Councillors also agreed if the in-house service could not be set up in time for the start of the contract, a short-term extension up to a maximum of March 2019 should be negotiated with current provider HSG.

A strategic review will be carried out after 12 months to decide the future of the service.

Healthcare heroes working against the odds

It was the second unsuccessful procurement attempt so it was unlikely they would find anyone else to take on the contract now, councillors were told.

The current service is provided by 77 staff, who would be transferred. The only difference clients would notice was a change in uniform.

Cllr Ian Tuffin, cabinet member for health and adult social care, said Gemcare’s reasons for withdrawing were “of a confidential nature”.

He said the service was vital to maintain the flow of patients out of hospital, providing community care to around 150 users a week.

Derriford Hospital (Image: Apex News and Pictures)

Craig McArdle, director for integrated commissioning for Devon NHS, told councillors taking the service in-house was “the right thing to do” to provide continuity for service users.

A report in September said the contract was worth an estimated £30,000 a week totalling £7.8m over the five years, based on the figures of 1,500 hours of care a week at £20 an hour.

It is designed to provide a seven-day service for patients sent home from hospital between 10am and 8pm.

One aim is to help reduce bed-blocking - when patients fit to leave hospital have to stay because of a lack of care support at home - a key priority for the NHS in Devon.

Members agreed in September to award Gemcare South West the five-year contract, with an option to extend it for two years.

Staff would provide short-term care and support at home for up to six weeks. If more care was needed, the service would hand over or carry on until a new provider could be found.

A report to the committee in September revealed the new hourly contract rate of £20 was a cut of £10.29 from the reablement contract rate.

That would have meant a saving of £262,000 by the end of March, based on the number of hours worked staying the same.

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Gemcare South West has a ‘Good’ rating from the industry regulator the Care Quality Commission and has provided home care in Plymouth for several years.

Only one supplier responded to an invitation to tender for the service and passed an evaluation process, councillors were told.

The report to the September committee said the chosen provider had offered the ‘most economically advantageous tender’.