Healthcare Giant Near Collapse

A Major Healthcare Supplier Faces Collapse

A significant supplier of healthcare equipment to individuals being discharged from hospitals or requiring support at home is reportedly on the verge of collapse. NRS Healthcare, which collaborates with the NHS and approximately 40 councils in England and Northern Ireland, is expected to run out of cash by the end of the week.

In a letter sent to the government in early July, seen by a news outlet, councils warned of “a devastating impact” and “risk to life,” urging for a short-term loan for NRS while new arrangements were made. However, no loan was offered, though most councils have since managed to develop plans to keep services operational.

Council leaders and social services officials have confirmed they are “exploring all options to maintain services, including alternative providers and local solutions.” The Local Government Association, representing councils in England, stated in a joint statement with the Association of Directors of Adult Social Services: “We are committed to ensuring that services remain as reliable as possible, especially to those people with the highest levels of need during this period of uncertainty.”

In a letter dated 4 July, councils in southeast England wrote to the Department for Health and Social Care (DHSC), warning that the firm’s potential failure would prevent local authorities from meeting their legal obligations to provide essential community support. They emphasized that it would be impossible to “discharge safely patients from hospital.”

The letter revealed that NRS, owned by private equity, has contracts to supply about 40% of the healthcare equipment delivered in the community in England. Many of its services are concentrated in the southeast of England, particularly in London. Local authorities in this region estimate that 60-70% of the orders are for equipment supporting hospital discharges, with the majority being urgent same-day or next-day requests.

NRS Healthcare employs around 1,500 people across the UK, according to its website. It provides a wide range of equipment, including wheelchairs, hoists, hospital beds, and fall-monitoring pendants. The company also handles maintenance and repairs of such equipment.

The company’s financial reports indicate it suffered a costly cyber attack last year and is understood to have been losing money on some of its contracts with councils. Like other businesses, it has had to manage the effects of inflation and rising costs, including employer national insurance.

In a statement released on Wednesday, NRS Healthcare said the firm has been working hard over the past few months “to turn around the business and explore all possible options to safeguard services and protect the communities who rely on them.” A spokesperson added, “We have already begun transferring all services to other providers and are implementing plans with the local authorities to preserve service provision and jobs.”