In 1987, Robert Kilgour bought a dilapidated hotel in Kirkcaldy, Scotland, planning to turn it into apartments. When a government grant was scrapped, he pivoted to converting it into a care home, launching Four Seasons Health Care in 1989. The timing was fortuitous: the following year, Westminster transferred social care responsibility to local councils, creating a booming market for private care homes.
Kilgour expanded rapidly, opening homes across Fife and dabbling in politics. By 1997, he owned seven homes. Encouraged by TV troubleshooter John Harvey-Jones to think bigger, he partnered with accountant Hamilton Anstead to grow Four Seasons into a chain of 43 homes. However, tensions arose as Kilgour focused on strategy while Anstead handled details.
In 1999, they sold the company to private equity firm Alchemy Partners. Anstead then told Kilgour that neither the new owners nor he wanted Kilgour to remain as an executive. Kilgour was forced out of the business he founded. The sale marked the beginning of a trend where private equity firms acquired care homes, often loading them with debt and prioritising profits over care.
The consequences have been severe. Residents and their families have faced inadequate staffing, poor food, and neglect. Critics argue that vulnerable elderly people have been treated as 'human ATMs' by investors seeking recession-proof returns. The model relies on public funding from local councils, yet profits are extracted through complex financial structures, leaving homes under-resourced.
Kilgour now reflects on his legacy with mixed feelings. While proud of building Four Seasons, he regrets the direction the industry has taken. The care home sector, once a small-scale local service, has become a playground for financiers, with the elderly bearing the cost.
