Major healthcare equipment firm on brink of failure

A major supplier of healthcare equipment to people who are being discharged from hospital or need support in their own homes, is on the brink of going bust.

NRS Healthcare, which works with the NHS and about 40 councils in England and Northern Ireland, is expected to run out of cash by the end of the week, the BBC understands.

The government said it was working with local authorities to minimise "any potential disruption" and find alternative suppliers.

In a letter, sent to the government early in July and seen by the BBC, councils warned of "a devastating impact" and "risk to life" and asked for a short-term loan for NRS while new arrangements were put in place.

It is believed no loan was offered, but most councils have now managed to get plans in place to keep services running.

Council leaders and social services bosses have since confirmed they are "exploring all options to maintain services, including alternative providers and local solutions".

"We are committed to ensuring that services remain as reliable as possible, especially to those people with the highest levels of need during this period of uncertainty," said the Local Government Association, which represents councils in England, in a joint statement with the Association of Directors of Adult Social Services.

NRS, which employs about 1,500 people across the UK and is based in Leicestershire, finds and supplies a wide range of equipment from wheelchairs and hoists to hospital beds and pendants which monitor falls. It also maintains and repairs equipment.

In a letter, sent to the Department for Health and Social Care (DHSC) on 4 July, councils in southeast England warned the firm's expected failure would mean local authorities would be unable to meet their legal duties to provide important support in the community.

It will be impossible to "discharge safely patients from hospital", the councils added.

The letter says NRS, which is owned by private equity, has contracts to supply about 40% of the healthcare equipment delivered in the community in England.

Many of its services are in the southeast of England, particularly in London. Local authorities in that region estimate 60-70% of the orders made are for equipment to support someone who is being discharged from hospital and that the majority are urgent same-day or next-day requests.

The company's accounts say it suffered a costly cyber attack last year and it is also understood to have been losing money on some of its contracts with councils.

Like other firms, it will have been juggling the impact of inflation and rising costs, including employer's national insurance.

In a statement on Wednesday, NRS Healthcare said the firm had been working hard over the past few months "to turn around the business and explore all possible options to safeguard services and protect the communities who rely on them".

"We have already begun transferring all services to other providers and are implementing plans with the local authorities to preserve service provision and jobs," said a spokesperson.

In a statement, a government spokesperson said: "We are closely monitoring this situation and are working with a range of partners who are supporting local authorities to minimise any potential disruption, find alternative suppliers if needed and ensure patients continue to receive high-quality care."