Charity Bank responds as ‘inadequate’ UK care homes make £113m profit

Charity Bank Chief Executive Edward Siegel has commented on a recent Guardian investigation which found that some of the country’s worst care homes are owned by companies that are turning over large profits:

“It is shocking to hear a Guardian investigation reveal that some of the country’s worst care home operators have made £113m in profits despite their residents receiving ‘inadequate’ care.

“This highlights yet another example where non-profit-maximising social businesses offer a more appropriate and effective means for providing such critical public services. 

“Charity Bank provides significant financial support to the health and social care sector, with £22.9m currently lent out to 47 different providers, and Care Quality Commission ratings are a key criteria in our credit assessments.

“We know from experience that charity and social enterprise operators, because they are not beholden to shareholders seeking to maximise investment returns, are able to reinvest their surpluses to improve care quality for the benefit of their residents and their families. They are inherently driven to deliver the highest quality care.”