Court Cavendish Secures First In New Generation of Turnarounds with Care Management Group (CMG) Announcement

Service users and staff are looking forward to a bright future with Care Management Group (CMG) – a leading care provider for people with learning disabilities and associated complex needs – following the signing of a new refinancing deal which takes effect in December 2013.

The new financial package marks the culmination of CMG’s highly successful transformation programme, led by Court Cavendish.  Court Cavendish is the turnaround specialist for the health and social care sector, which has also driven improvements for HC-One following the Southern Cross implosion.  The CMG deal is Court Cavendish’s first total turnaround, validating its unique quality focused compassionate approach to the rebuilding of failing health and social care businesses.

CMG is transforming support for people with learning disabilities and has developed a number of industry-leading initiatives to drive up standards across the sector.  The company was fundamental in the development of ‘The Driving Up Quality Code’, launched by former care Minister Paul Burstow MP at the House of Commons this summer and endorsed by around 80% of providers in England.  The code outlines practices and behaviour for organisations that support people with learning disabilities, far exceeding minimum standards and promoting high quality care throughout the learning disability sector.

CMG’s pioneering approach, which incorporates initiatives like their Service User Parliament, athletics championships held with Olympic and Paralympic athletes, and unannounced inspections of services by members of service users’ families, has contributed to it becoming recognised as a trailblazer for the sector.  But this was not always the case.

In 2007, prior to its takeover by Court Cavendish, CMG was a failing provider. The organisation was struggling to provide the minimum standards of care and was on the verge of financial collapse. Court Cavendish – under the leadership of former Priory alumni Dr Chai Patel, David Spruzen and Bob Lewis – took over the management of CMG, and in only six years has overseen a fundamental overhaul of the company’s operational and financial performance.  £12 million pounds has been invested in services in the last five years with significant additional investment planned in the coming period.

In the deal announced last week, CMG’s syndicate of banks has opted to exchange a portion of CMG’s debt for a 15% stake in the business – demonstrating their confidence that CMG is well placed to continue to grow and thrive.

Sir William Wells, Chairman of CMG, said:

“This financial deal marks a new beginning for CMG. We look forward to the safe and sustainable future that has been secured for all our staff and service users.

“Six years ago many people were unsure that CMG would be able to weather the financial and operational storm it faced. With the support and leadership provided by Court Cavendish we have not only survived, but emerged as a sector leader, both in the exceptional quality of the care we provide and our financial sustainability.”

Dr Chai Patel, CBE, Deputy Chairman and major CMG shareholder, said:

“The last six years have not been easy. When Court Cavendish took over the management of CMG in 2007 the business was in a dire financial and operational condition. Our first priority has always been a commitment to providing the high quality care our service users deserve. 

“But high quality care cannot be maintained without sustainable financial backing. The deal is the culmination of a complete financial overhaul of CMG. The organisation now moves forward with what we call a ‘right-sized’ balance sheet and will be able to continue to lead by example and provide innovative social care services in a financially secure future.

“I would like to praise CMG’s banks for the confidence and backing that they have displayed in the company.  I also want to express my admiration for CMG’s management team led by Managing Director Peter Kinsey and Financial Controller Garry Fitton, and indeed every member of staff, who make a real difference every day to the lives of our service users and their families.”

Sandie Keene, President of ADASS (Association of Directors of Adult Social Services), said:

“We are delighted that CMG is continuing to build on the strong foundations put in place by the Court Cavendish team.  ASASS welcomes the news of new investment which will enable CMG to provide service users with the excellent care they deserve.”















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