Allied Healthcare, who provide domiciliary care for 60 residents in Doncaster announced they were looking to sell the contract.Â
But Kate Anderson-Bratt, head of service for commissioning and contracts, said the council had served notice with Allied and continued on with their contingency plan to transfer staff.
Ms Anderson-Bratt said the service would not be brought back in house but were 'facilitating' a transfer to another private provider.
Allied were responsible for carrying out 1,084 hours of home care a week for the council and 500 hours of complex care packagesÂ for Doncaster NHS Clinical Commissioning Group (CCG).Â Â
The transition process is to start on Monday, December 3 to ensure minimal disruption to the current service.Â
Government regulator Care Quality Commission said it wasÂ concerned about the viability of services run by Allied Healthcare from the end of November and had warnedÂ councils to make contingency plans.
It said the company had '˜failed to provide adequate assurances' regarding future funding and there was now a credible risk of disruption to services.
Ms Anderson-Bratt gave an update to councillors on the Adult Social Care Scrutiny Panel.
She said: "Ourselves and the CCG have worked very closely together while this has been unravelling around the Allied Healthcare situation.
We were notified two weeks ago (Nov 12) that their financial standing was only guaranteed until November 30 and no assurances could be made.Â
'We've thenÂ gone through and got our contingency plans in place and we first looked at our strategic-lead providers to assist us where Allied could noÂ longer deliver packages.Â
'After Allied told us they would no longer be continuing, we had to look at a transition which we have done. We continue to work with our strategic-lead providers to put transfer plans in place for staff so these care packages continue.Â
"We are confident all those care packages will be transferred prior to the day Allied will no longer be in business with us past December 1.Â
'We know it's a difficult time in the run up to Christmas so having that new provider in a couple of weeks before is always better.'