Directors move to quell Four Seasons market fears

After much speculation in the press about the Four Seasons financial situation, ADASS, (Association of Directors of Adult Social Services) want to reassure care home residents, the public and politicians of their faith in the long-term security of Four Seasons, by circulating a second viability analysis of the care home provider’s place in the care market.

According to ADASS President Peter Hay: ‘We have been concerned for some time now that ill-informed comments to the media could have been at best unsettling, and at worst unnerving, for many elderly people. The Viability Study should go a long way towards reassuring all 20,000 of them that their homes, and their futures in those homes, are safe and secure.’

Peter Hay acknowledged that the analysis confirmed what was already known, that Four Seasons does carry substantial debt even following its recent rescheduling exercise. However, he said, the study also shows that the company’s revenues are solid; occupancy rates higher than the average for the industry, and that the debt ought to be managed in an appropriate and satisfactory manner before the end of this year.

He went on: ‘Four Seasons have been fully transparent with our analysts. They have made all relevant figures available and indeed, have posted them on their website for all to read. Throughout the exercise they could not have been more helpful, open and informative about all the main factors that impinge on operators in this market.

‘The company stands as a beacon of transparency, lighting the way that I wish and hope all others will follow as our sector begins the long task of solving issues concerning the proper scrutiny and regulation of company finances. These companies are relied upon by thousands upon thousands of residents – both state-funded and self-funded - for peace and tranquillity as they grow older.

‘It is vitally important for everyone concerned to be reassured that companies providing care are financially stable. And that where instability might be on the horizons, local authorities have the means to spot the signs early, and be able to act promptly to make sure the residents involved are as safe and secure as they ought to be.’

Four Seasons have provided the following response to the ADASS report: ‘We welcome the final viability analysis report on Four Seasons Health Care by the Association of Directors of Adult Social Services [ADASS]. This is based on an in-depth understanding of our business and financial health. It confirms that our underlying business is strong, successful and growing.

‘The report is far more positive than a first draft based on limited data that ADASS had not intended to be made public. That first draft was leaked and selectively quoted to media by the GMB union, causing concern to residents, employees and local authority care commissioners. We trust this final report will allay some of those concerns.

‘ADASS has acknowledged that Four Seasons has been open and transparent and we support the call by ADASS President Peter Hay for more transparency across the sector.’

Photo: Pete Calveley: Chief Executive of Four Seasons