HUNDREDS of Hampshire workers and elderly residents face uncertainty as fears mount about the future of a healthcare giant.

Up to 840 staff work in 14 care homes run by Southern Cross Healthcare across the county which look after 600 people.

Union bosses fear huge job cuts and the prospect of elderly and infirm residents losing their homes after cash problems emerged and share prices plummeted.

Residential facilities include Chandler’s Ford Home and Moorwood Cottage, Chandler’s Ford, Hampton Lodge, Southampton, Cams Ridge, Fareham, and Woodcot Lodge, Gosport.

One worker, who did not want to be named, said: “It is worrying but staff are just trying to get on with their jobs.

“We don’t know anything and we have been told not to talk to anyone.”

Southampton Pensioner’s Forum secretary Don Harper said: “If these services shut down it would have a devastating effect on residents and workers.

“I mean, where would they go? For some who don’t have relatives, the nurses and carers are like family. For very elderly people, having to move could even be terminal.”

Age Concern Hampshire boss Chris Perry added: “This is a source of serious concern. If this business were to fail, local authorities would have a responsibility to ensure nobody ended up on the street.”

Company bosses at the UK’s largest care home operator said funding cuts from local authorities and the NHS could make the heavy rent burden “unsustainable.”

They went on to say they were in talks with landlords about restructuring.

Financial specialists from KPMG have been appointed to look at Southern Cross’s options.

Mark Cash, Southern Cross Healthcare regional boss, denied rumours that residents were at risk.

He said: “As a public limited company, we must keep investors informed of changes to our business outlook if they differ from previous statements.

“Like all independent care providers, we continue to face challenges because fewer people are being placed in our homes by local authorities, many of whom are seeking to reduce the fee levels they pay in line with public spending cuts.

“Working with the support of our banks, Southern Cross is focussed on improving our operational effectiveness and accelerating negotiations with landlords to seek reductions in our rent bill.

“We have an important role to play in delivering frontline services to care for elderly people across the UK.

“We are taking decisive action to ensure our business remains sustainable. We are also urging government, landlords and commissioners to work co-operatively in supporting us.”

The firm issued a profit warning with the share price having lost 97 per cent of the price it was floated for in 2006.

Reports say the firm is now worth £10m compared with £420m when it floated five years ago with losses having doubled to £47.4m in the year to September 2010.

Southern Cross operates 750 care homes across the country looking after 31,000 residents and employing 45,000 staff – many of whom are on minimum wage and have just been hit with a pay freeze.

Leaders at the GMB union have blamed “sky high” rents by landlords and devastating cuts.

General secretary Paul Kenny said: “These 750 UK care homes are not factories that are failing from lack of demand but are an essential part of every community which now face ruin due to the combination of privatisation and private equity.”

He claimed overcharging on rent amounted to £60 per week per care home bed.

The Daily Echo understands a property deal by Southern Cross Healthcare in 2006 involved 555 homes being sold and then leased back from investment companies who were guaranteed upward-only annual rent reviews.

Residents 'will never end up on the streets'

COUNCILLOR Felicity Hindson, executive member for adult social care said: “We currently have around 200 clients across a number of homes associated with Southern Cross within Hampshire. As we do whenever there are concerns about a home, we will be undertaking a risk assessment with each home to fully understand the circumstances and to plan if necessary for contingencies.

“Residents will never end up on the street. As we always do, we would work with the home owners and the regulator, Care Quality Commission, to ensure the wellbeing of residents and to find the best solution.”

Southampton City Council were unavailable for comment.