A private company which provides community health care to 261 individuals in Lambeth is reportedly on the brink of collapse.

Allied Healthcare, one of the UK’s largest care providers, cares for elderly and vulnerable people in the borough.

But a Lambeth Council spokesman told News Shopper that the council had “contingency plans in place” should the health care provider crumble.

The spokesman said no one would be affected if the company collapsed.

He said: “Lambeth is working to ensure good communications are in place at this particular time with Allied Health Care to keep abreast of the situation.

“We have contingency plans in place should they be needed and are working with the NHS, healthcare providers and central government to ensure that nobody receiving care and support services from Allied are adversely affected by any potential action.”

It has been reported that Allied Healthcare cares for about 13,500 people through contracts with 150 local authorities as well as out-of-hours GP services for the NHS.

An Allied Healthcare spokesman said the company had been "operating in a highly challenging environment for a sustained period of time, which has placed pressure on the company.

“As a result of these challenges, Allied Healthcare has taken the decision to pursue a Company Voluntary Arrangement (CVA), as part of a prospective business plan that will ensure safe continuity of care across our UK-wide operations, place the company on a sustainable long-term footing, and maximise repayments to creditors," he said. 

The proposed CVA will not impact on the safe continuity of care that Allied Healthcare provides, he said. 

“Allied Healthcare will continue to trade safely and it remains business as usual for Allied Healthcare employees and customers.”