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Optivo ends last care contract to exit sector
A large London housing association has ended its final care home contract, marking its exit from the sector.
Optivo, which owns around 45,000 homes, today ends its contract with Ealing Care Alliance for the long-term management of facilities and services at four care homes in Ealing, west London.
Ealing Care Alliance was set up to manage the homes through a private finance initiative (PFI) agreement between Ealing Council and Viridian Housing, which merged with Amicus Horizon to form Optivo in 2017.
Inside Housing reported on Optivo’s intention to exit the care sector in September 2018 after it lost £1.9m on the four homes in 2017/18.
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Paul Hackett, chief executive of Optivo, said: “This PFI contract was Optivo’s single remaining activity in the care sector. It’s been our strategic ambition to exit from care and focus on our core business of housing.
“Optivo has made an annual operating loss on this contract for a decade. Ending the contract represents a significant improvement to our financial plan.”
Specialist care provider Minster has been selected to take over management of the care homes.
All Optivo’s care staff will be transferred to Minster, with the association promising a “seamless service” for residents and their relatives.
The four homes are Elm Lodge, opened on 8 August 2006 with a capacity of 75 beds, Martin House, opened on 25 February 2008 with a capacity of 77 beds, Sycamore Lodge, opened on 13 March 2008 with a capacity of 75 beds, and Chestnut Lodge, opened on 28 July 2009 with a capacity of 64 beds.
Care regulator the Care Quality Commission has rated each of the homes as ‘good’.
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