A shrinking state rolled back to release a dynamic private sector. What a lovely idea (to some). Although we can be sure that the first premise will be fulfilled under this coalition, the second is looking altogether more flimsy if the profits warning from private care provider Southern Cross Healthcare proves well founded.
After George Osborne's first Budget and warnings of a grim comprehensive spending review in the autumn, the care homes provider is already sounding distinctly edgy at the prospect of more public spending cuts.
In its interim management statement for the third quarter of 2010, it admits the pressure to reduce public spending has affected the number of people admitted to its care homes and doesn't expect this to change in the next quarter.
The Independent reports that Southern Cross Healthcare's earnings fell by nearly £8m to £12.1m in the year to June and, reflecting a deterioration in quality of service, Care Quality Commission inspectors awarded no stars to 16 of its care homes.
In a commentary on Southern Cross's fortunes, or lack of them, in the same newspaper, David Prosser concludes: "Taking up the baton from the public sector is one thing, but the private sector is also being tripped up by it."
We have already seen good old socialist state intervention to save the banks (in order to preserve capitalism, ironically). But will the state step in to retrieve the baton if the private sector fails social care? I should cocoa.
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