Northamptonshire County Council has received a £100,000 settlement over a dispute with Shaw healthcare.
The financially troubled council, which had to stop all but essential spending twice last year, operates a long term private finance initiative (PFI) with Shaw healthcare involving the running of four elderly care centres.
A spokesman for Northamptonshire County Council said: “We cannot provide the detail of the settlement under the terms of the contract and confidentiality clauses but can confirm that this relates to the obligation generally for Shaw to ensure that the facilities are maintained and available for use by clients.
“We are continuing to work with Shaw healthcare and the Department of Health constructively to vary the existing contract and ensure that the services and facilities we commission at the centres meet the council’s needs today and going forward and reflect the changes we have seen in social care since the contract started in 2003.
“We have been working together to define what these needs are and to agree how we can make sure we get the best use of the centres in the future.
“In the meantime working with Shaw we have been able to increase the current occupancy levels to 70% across the centres which is a significant improvement on recent months. We expect the variation to the contract to help us increase this further.”
The four care centres, which are run by Shaw healthcare under an £8.8m annual contract are: Thackley Green in Corby, Longlands Specialist Care centre in Daventry, Lancum House in Wellingborough and Turn Furlong in Northampton.
Shaw healthcare told CHP it was unable to comment.