The owner of six elderly care homes across the north and north-east has called for a level playing field in public funding for the sector.
Renaissance Care, which has a total of 11 care homes throughout Scotland, fears a breakdown in provision after the introduction of the National Living Wage (NLW) unless councils and the Scottish Government “play fair” with independent operators.
Robert Kilgour, chairman and founder of the East Lothian-based business, wants Holyrood to set up an independent review of costs and funding across all sectors involved in elderly care.
He said Scotland’s ageing population as a “ticking time-bomb”, which under current funding arrangements could lead to care homes closing and planned new sites not being built.
And he warned of a huge increase in NHS bed-blocking as more elderly people are cared for in hospitals, creating “intolerable” pressure for the health service.
Mr Kilgour said one Scottish council, Fife, spent more than £200 extra every week per resident at its own care homes, compared with independently-run sites.
The funding shortfall for independent operators will be compounded by the new NLW from April 1, when they are hit by large increases in their wage bills, he said.
He added: “I’m a strong supporter of the living wage and I genuinely believe hard-working staff in the independent care sector deserve to be paid more for the excellent job they do.
“With three quarters of our residents being local authority-funded and almost two thirds of our fee income going on staff costs, it’s only fair that government helps us fund its introduction.
“We’re not asking for special treatment, simply fairness. Without such a settlement, more independent care homes will shut, leading to intolerable pressure on local authority homes and bed-blocking in hospitals.
“There is simply no fat left in our businesses after the last 10 years of recession and ongoing extra costs and requirements set by increased regulation. We urgently need government action and support. A level playing-field on funding is all we ask.”
Renaissance owns four care homes in Aberdeen – Jesmond, Persley Castle, Torry and the Cowdray Club.
The firm also owns and runs Wyndwell care home in Peterhead and Meadowlark at Forres.
Charles Skene, owner of Inchmarlo Retirement Village on Royal Deeside, also said the NLW was going to cause severe problems for some operators, adding: “A considerable number of care homes may be forced to close”.
But he stressed there was no threat facing Inchmaarlo, where most of the residents are privately funded.
Health Secretary Shona Robison said: “Negotiations on a national care home contract are under way between local authorities and providers.
“We are playing our part by providing substantial investment to the sector and we stand ready to further support these negotiations if invited.”