Care providers are calling on North Yorkshire Council to look again at plans to create its own dementia hubs at a cost of up to £60m.
The care provider organisation, The Independent Care Group (ICG) has urged the authority to put the proposal out to tender so that others can bid to run the service saying that the Independent sector is best placed to provide the service.
It has also called for an independent overview of the council’s proposal.
North Yorkshire Council is considering building up to five hubs to provide residential care for up to 250 people with dementia.
The ICG has welcomed the planned additional dementia care provision but says the local authority should put the plan out to tender.
In a letter to the authority, ICG Chair Mike Padgham says:
“At a time when North Yorkshire Council, like other local authorities, is under significant financial pressure, it is essential to consider whether this investment is necessary, particularly when independent care providers could deliver these 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.”
Professor Martin Green OBE, Chief Executive of Care England, added:
"The independent sector is resilient, but it is facing unprecedented challenges due to the recent changes to Employers' National Insurance Contributions and the increase in the National Living Wage. These rising costs are putting immense pressure on providers, and they need support to navigate these difficult times.
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."
North Yorkshire Council says that the current care market is struggling to meet the demand for specialist dementia and intermediate care and says the cost of specialist residential care from independent providers has increased by 25% in the last two years.
The proposed Care & Support Hubs will offer specialist residential dementia care in purpose-built settings that are able to meet the needs of people with advanced dementia.
The new hubs are projected to save the council up to £14.8 million per year once fully operational. The locations of additional hubs will be determined based on demand and market conditions, but there is an expectation for one to be in Scarborough and one in Harrogate.
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