IT is disturbing news that the financial status of Darlington-based Southern Cross Healthcare, Britain’s largest care home group, has deteriorated to such an extent that it could collapse within six weeks.

It is disturbing for the group’s employees, and it is disturbing for the elderly residents of 750 homes around the country, including 100 in this region.

Although the company’s chief executive Jamie Buchan remains optimistic that negotiations to find a way out of the financial mire can still be successful, local authorities have had no choice but to put contingency plans in place in case the worst happens.

If Southern Cross cannot agree rent reductions with its landlords, and the banks withdraw a £50m credit facility guaranteed until June 30, local authorities will, of course, have to come to the rescue.

No one will be thrown onto the streets but continuity of care in familiar surroundings is important to elderly people, and the prospect of disruption is regrettable.

Hopefully, despite the bleak outlook, a way forward can be found that minimises the uncertainty and avoids causing distress.

In the meantime, this worrying development in the private care sector surely underlines the folly of going too far in undermining the safety net of the public sector.