Fears over £300m purchase of Bupa care homes

CONTROVERSIAL Labour donor Chai Patel has bought 122 care homes from Bupa in a debtfuelled deal that has raised concerns.

HC-One is now the country’s biggest care home operator after the £300m purchase, which brings his portfolio to 22,000 beds and 350 homes.

The deal has raised fears that HC-One is taking on risky levels of debt at a time of huge financial pressure in the sector. Patel told The Times last week that HC-One would have around £500m debt which he insisted was not imprudent as its estate was worth double that and interest rates were fixed.

Yesterday, care home finance expert Nick Hood cautioned: ‘I continue to be concerned about the ability of the major care home operators to service the enormous debt they are carrying.’ HC-One was created by former Priory boss Patel when Southern Cross went bust in 2011 and its homes were sold. It was sold to private equity firms but is still run by Patel.

Patel said: ‘Residents will continue to receive the kindest, high-quality care through a range of specialist services and we will continue to invest in our staff.’