A private equity-backed provider of care services to vulnerable patients across England is on the brink of insolvency, prompting Whitehall officials to draw up contingency plans for its collapse.
Sky News has learnt that NRS Healthcare, also known as Nottingham Rehab, is close to falling into compulsory liquidation after efforts to find a buyer were unsuccessful.
Sources said the Official Receiver was expected to step in owing to the importance of the services offered by NRS Healthcare, which provides living aids and equipment to elderly and vulnerable patients, many of whom have recently been discharged from hospital.
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The company supplies wheelchairs, telecare and other technology-enabled healthcare services through contracts with local authorities across the country.
Whitehall sources said the government was working with the Insolvency Service to assess contingency plans for the continued provision of services.
If NRS Healthcare could no longer supply equipment, local authorities would have a duty to intervene and ensure continuity of care such as disability aids.
“We are monitoring the situation closely,” a government insider said.
PricewaterhouseCoopers (PwC), the professional services firm, had been trying to find a buyer or new investors for the business in recent weeks, according to healthcare industry executives.
NRS Healthcare has been owned by Graphite Capital, a private equity firm, since 2019.
Graphite Capital’s other investments have included the Groucho Club, the Soho members’ club.
One healthcare industry source said the terms of NRS Healthcare’s contracts with local authorities had resulted in its financial decline.
NRS Healthcare describes itself as the biggest care provider of its kind in the UK, although the precise number of patients to which it provides services was unclear on Wednesday.
In accounts filed at Companies House dated March 31, 2024, Nottingham Rehab said its directors were “satisfied with the results for the period”.
It reported an operating loss of £5.6m for the relevant period, but said its directors were “confident there is significant scope to develop and grow the business”.
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In response to an enquiry from Sky News, a Department for Health and Social Care 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.”
A spokesman for NRS Healthcare refused to answer basic questions, including how many people it employs, although it is expected that many employees would be retained in the event that the company falls into compulsory liquidation.
Graphite Capital confirmed that it had taken ownership of the company in 2019 but refused to disclose the price it had paid.
PwC declined to comment.
