A TREASURED care home claims it could have to turn would-be residents away amid a funding crisis.

The NHS pays care providers to looking after vulnerable people and those in charge at The Fed, which runs Heathlands Village Care Home in Prestwich, say the latest settlement is "derisory" and "financial suicide."

However, leaders of NHS Bury Clinical Commissioning Group (CCG) have hit back, claiming that funding is allocated on a case-by-case basis.

CCG chiefs have said high-level talks will now take place in an attempt to resolve the dispute.

The latest settlement relates only to new people entering care and covers the 12-month period up to the end of next March.

The Fed claims the CCG is only willing to pay it £557.48 per person per week, compared with £750 in the previous 12 months.

Heathlands Village, in Heathlands Drive, can accommodate up to 214 people but there are currently 154 there due to ongoing building improvements.

Mark Cunningham, The Fed's chief operating officer, issued a statement that The Fed itself called "dramatic".

Mr. Cunningham said: "At a time when hospital beds are conservatively estimated to cost £800 per night, the CCG is effectively offering to pay Heathlands Village £3.31 per hour to provide continuing healthcare.

"The proposal to knock as good as £200 per week off current funding, at a time when we have just been recognised by the Care Quality Commission, as one of the top two homes in Bury is literally a crushing blow."

Between 2008 and 2012, Heathlands got between £850 and £950 per patient per week and that fell to £750 in 2012.

Mr Cunningham said The Fed took "a huge hit" as a result and a rise in costs, such as wages, since then

He added: "Currently, the cost of providing nursing care is over £800 per week.

"Acceptance of what I can only describe as their derisory offer will mean financial suicide for our nursing service.

"The alternative is to insist that families pay a £388 per week top up.

"We are already stretched to the limit and the CCG is effectively forcing us to refuse admissions of people in need of continuing healthcare, unless their families can afford to subsidise the cost of care.

"As a charity, we will always endeavour to accommodate the individual who has neither their own financial resources nor any family to contribute.

"Effectively, Bury is creating a two-tier system based on ability to pay for something that fundamentally should be free and is a cornerstone of our NHS.

"How can that be justified?"

The CCG's chief officer Stuart North dispute The Fed's claim.

He said: "Rather than reduce the level of funding for eligible patients, the levels of funding has actually increased slightly since last year, based on a new locally agreed tariff.

"In addition to this, the CCG continues to honour the existing legacy arrangements that have been agreed for patients who were based at Heathlands before the funding framework was put in place.

"We believe this is in the best interests of these patients.

"We commission services on an equitable basis for our population.

"The Fed agreed to the framework price last year (of £550 per week per placement) on the basis that they may charge individuals a 'top up' for their enhanced services."

Mr North added that individual patient needs — not cost — is the primary concern.

"Every patient's circumstances will be different and this process would involve a discussion with the patient and their family or representative, and would also consider specific and individual needs," said Mr North.

He added: "For some patients, a more expensive provider will be more appropriate if this is necessary to meet their individual assessed needs."