Care home needs 'miracle' to survive

The charity which owns Hollenden House admitted this week it would take a 'miracle' to keep the place open due to a lack of funding and a drop in the number of residents. Thirty one jobs are also under threat.

Ex-Service Fellowship Centres administrator Maurice O'Dea told the Observer: "We are doing our utmost to keep Hollenden House open and I can't stress that enough. But we're only a small charity with limited resources and we're very concerned about the future."

He said the home was losing money year on year, largely because contributions to care fees paid by East Sussex County Council are unrealistically low.

Retirement flats in Whitworth House, owned by the same charity, will not be affected.

Mr O'Dea added: "It would be wrong to go into details about the extent of the financial difficulties and the shortfall at this stage. It's difficult to say what's going to happen when the new financial year begins in April.

"Our two considerations are our residents and staff. We care hugely about all of them and the last thing we want to do is see them lose their homes and jobs."

The Ex-Sevice Fellowship is based in Grosvenor Place, London, and also runs a hostel for ex-service personnel.

Mr O'Dea said: "It's a very sad situation. I've informed the residents and we are wishing and hoping for a miracle. We've even tried advertising in the national press to try and attract more residents and you know how much that costs, especially considering what a tiny charity we are."

The county council announced last week it is increasing the fee it pays to care homes from 239-a-week per resident to 256 to close the gap with neighbouring authorities, but Mr O'Dea said that still might not be enough.

He added: "There was a feature on the radio about this issue and care home owners in Birmingham and Lancashire were complaining because they only get 268 and 286 a week. If East Sussex aren't the worst payers in the land they must be pretty close."

Cllr Keith Glazier, lead county council cabinet member for social services and health, said: "The county council, through discussion with representatives of the independent sector, recognises the cost pressures upon service providers. To this end steps have been taken to award above inflationary rates, and in the last two years fees have been increased by over 16 per cent.

"In addition to the 7.1 per cent increase in standard residential care, a new high dependency band has been introduced after discussion with independent sector organisations.

"Through the introduction of the above categories, opportunities will be provided from which increased costs for individual placements can be more readily recognised and represents on-going commitment to improve the position. The Cabinet values the work of the Independent Sector, and wants to improve this partnership."

q Hollenden House opened in 1946. It was originally the Loretto Convent but was requisitioned by the Army during the Second World War. A new wing was built in 1967 and in 1997 a 65,000 amenities suite was opened. It has capacity for 55 residents but currently only houses 29. That number has dropped from 34 in the last five years.