SHORT-sighted local authority policies are threatening to cause a major bed-blocking crisis in Yorkshire.

That's the view of the Independent Healthcare Association, which has produced a damning report criticising the loss of hundreds of care home places.

The association, Britain's leading independent health organisation, claims that poor pay-outs given to local care homes will only force more out of business.

The IHA argues that this will have major consequences for the region's already critical delayed discharge problem.

In the Yorkshire area, some 6,605 over 75s occupy NHS acute beds. Of those, about 548 are awaiting discharge into other forms of care.

But, as the number of care home places falls, as owners decide to close, there are less places available for those who can be discharged - forcing them back into hospital beds.

Susan Doohan, IHA policy executive and report author, said: "The IHA has identified that the fee levels in many areas do not even meet basic costs, let alone quality.

"The Department of Health is insistent that local authorities should recognise the true cost of care, in order to maintain capacity and reduce delayed discharges in NHS hospitals.

"We hope this will be the catalyst for a change in attitudes. Without it, further care homes will close, the NHS will be doomed to fail and older people will be left short-changed."

Last month, Government Ministers announced that North Yorkshire would receive at least £754,000 per year for the next two years to tackle bed blocking.

It is expected that the bulk of the cash will be spent trying to buy extra places in private care homes. Penny Jones, planning director at North Yorkshire Health Authority, said: "We, the county council and City of York Council work with the independent sector to minimise the impact of delayed discharges.

"We will continue to make every effort to ensure patients can be promptly discharged from hospital. Extra money made available for local authorities will help."

Vale of York MP Anne McIntosh has also accused Ministers of being "afraid to admit" how many care home beds have been lost.

She has been told by Health Minister Jacqui Smith that only 130 beds had been lost between 1999 and 2000. But Ms McIntosh claims that the "true number", to date, would be 427.

Meanwhile, a York residential home could be converted into student flats if council chiefs give the green light.

Tony Hall Jackson, owner of York Rise Residential Home, has asked City of York Council to consider a planning application allowing him to change the home into 26 student flats.

Mr Hall Jackson said he is not closing the home, but wants a contingency plan should his business struggle in the coming months.

Updated: 10:29 Friday, November 16, 2001