The Isle of Wight council is being asked to keep its care company, Wightcare, in-house despite a reduction in demand.
It would implement a two-year programme to turn things around.
It comes as the council looks to find a financially-viable way forward for the service, which supports around 2,100 Islanders.
Subsidised by around £550,000 pa
The authority currently subsidises Wightcare —this year at an estimated cost of nearly £550,000.
That is after a 13 per cent hike in fees earlier this year which the council hoped would generate a further £101,000.
An independent review found the service costs £1,572,000 to run each year with 72 per cent of its budget going towards staffing.
Customers leaving the service
However, demand in previous months has reduced, with 92 customers choosing to leave the service.
To break even, it was determined a 54 per cent increase in either client numbers or fees would be needed.
However, the independent review said continued fee increases alone may not alone be the answer.
Operate in a more business-like way
Instead, the council could look at how resources are deployed and operate in a more business-like way to increase growth and minimise costs.
Three options have been proposed for the authority — keeping the service, outsourcing it to the private sector or creating a trading company for Wightcare.
Retain as in-house service
The council’s preferred option, and one cabinet could agree on Thursday (10th November), is to retain the Wightcare service in-house and develop a two-year cost recovery model, starting from April, to achieve break even finances.
It is thought keeping the service in-house would pose the least risk and allow the council greater control and quicker responses.
If it were to stay with the council, a transformation plan including a service redesign, offer review and enhanced marketing would take place.
This article is from the BBC’s LDRS (Local Democracy Reporter Service) scheme, which News OnTheWight is taking part in. Some alterations and additions may have been made by OnTheWight. Ed
Image: National Cancer Institute under CC BY 2.0
