The Southern Cross debacle was not one that was unpredictable. In fact it was UNISON that told us all so.
In September 2008 the union published “The Rise of the Public Services Industry” by Paul Gosling examining the wider social and political implications of the so called public services industry. Among its key conclusions was that: -
Public services developed in response to market failure. But the supply of public services through a private public services industry leaves service users dependent on the private sector and vulnerable to market changes.
The increasing privatisation of public service delivery often fails to produce value for money for the public sector or service users. It also increases the government’s financial exposure and the risk of personal catastrophe for vulnerable service users.
Southern Cross is itself mentioned on several occasions as are other private sector providers of public care .(Particularly on P 57, 58 and 59 - Services at risk)
www.unison.org.uk/acrobat/PP8917.pdf
See also http://unisonactive.blogspot.com/2011/05/britains-private-care-faces-crisis-ft.html
http://unisonactive.blogspot.com/2011/06/care-privatisation-time-to-call-halt-to.html