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Margaret Hodge: More care homes 'may fail' like Southern Cross

6 December 2011 Last updated at 06:02 GMT

MPs are warning that there could be a repeat of the collapse of care home operator Southern Cross, unless more is done to monitor the financial health of companies which house the elderly.

Public Accounts Committee chairwoman Margaret Hodge said similar operators are likely to collapse, because ''the financial model on which Southern Cross was based just doesn't work anymore''.

The Association of Directors of Adult Social Services has said local councils are now being provided with information about the financial viability of care home companies.