HC-One has already closed one inadequate home and had another placed in special measures last week.
Cambridgeshire Council County, which is, said HC-One would no longer be contracted to provide care home beds under a deal for 99 beds, worth £64m over 15 years.
The authority said it would not be making new placements with the company, but existing residents would be given the option of staying in the remaining three homes run by HC-One locally. It said it had offered to buy "the affected homes from HC-One" and this offer "remains on the table". However, a spokesman for HC-One claimed only "informal discussions" had taken place.Mr Howitt, Labour's chairman of the council's adults and health committee, said: "Our action reflects how deeply disappointed we are by the poor performance of HC-One regarding The Elms.
"We have many other brilliant providers offering excellent care, so it is right that HC-One is held to account regarding its poor performance. It is the duty of the council to act."In a statement, HC-One said: "Residents whose care is currently paid for by the council will continue to be supported at The Red House, The Gables, and The Cambridge care homes.
"We have historically held a separate contract with the council where a set number of rooms in our homes were reserved exclusively for the council to use. This contract has now ended."We accept that standards are still not where they need to be, and we apologise for this. We will always have the best interests of our residents and colleagues at the forefront of our mind."
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