Millions of pounds will be being spent by Portsmouth City Council on running a former Care UK home.
A report on the finances of Harry Sotnick House, which was transferred to Hampshire County Council from Care UK in April, show the local authority will spend £3.4m in the first year of running the home and £2.4m in year two, along with an additional £3m in the first two years, The News reported.
The budget is being used to fund increasing the bed capacity at the home from 62 to 92 beds.
A report to the council’s health and wellbeing board said: “The council previously had a budget that was sufficient to meet the service payments to be made to Care UK for 62 of the local authority beds.
“Under the agreement Care UK was able to sell the remaining beds to private self-funded clients at no cost to the council. The budget now needs to meet the needs of running a 92-bed facility.”
Care UK’s contract to run the home was terminated after it was rated Inadequate by the CQC (see Care UK to handover Inadequate home to new provider).
Hampshire County Council runs 10 care homes, eight of which are rated Good by the CQC.