Northampton Country Council has terminated its contract with Latimer Grange care home in Burton Latimer following a police investigation into alleged neglect.
Two people were arrested last year following a BBC investigation into the home.
A Northamptonshire County Council spokesman said: “The police investigation into safeguarding issues at Latimer Grange care home is still ongoing. However, due to ongoing concerns in relation to the management of the home and the home’s inability to meet the needs of residents without significant input from the council, we have taken the decision to end the council’s contract with the Latimer Grange.”
The spokesman said the CQC had been informed of the decision and were in full support of the action.
The council is working with families and residents to find alternative accommodation for the residents and has taken over interim management of the home during the notice period.
A police spokeswoman confirmed an 82-year-old man, a 51-year-old woman and a 66-year-old woman were on conditional bail as part of the investigation.
Latimer Grange was rated Requires Improvement by the CQC in September 2017 following an inspection prompted by the BBC investigation.