A High Court judge has granted permission for a judicial review of how Pembrokeshire council sets the amount it pays in care home fees.
A hearing in Cardiff heard that the weekly £390 it pays per resident is not enough to cover costs.
The owners of four homes - Woodfield Care Home in Narberth, Woodland Lodge Care Home in Gumfreston, Pencoed in Wooden and Langton Hall in Scleddau - claim they face closure without more money and that the fees structure is unfair.
The council's legal defence claims the homes financial problems are not a consequence of how the fees are set.
At the hearing, the homes - which are trying to claim extra payments of £90 per resident per week - were refused a temporary increase in fees until the judicial review.
Care Forum Wales, which represents independent care providers, was due to provide written evidence on their behalf.
Senior policy advisor Barry Latham said: "These cases appear to be symptomatic of a wider problem in the social care sector which is causing a postcode lottery in relation to the provision of care in Wales.
"As around 75 per cent of residents in care homes are publicly funded, the fees which local authorities pay for their supported residents have a critical impact on the financial viability of care homes."
county council statement
A statement issued following the hearing by Pembrokeshire County Council said: "The council is 'pleased that his Honour Judge Jarman QC refused the claimants' applications for injunctions and said that although he was satisfied that they had a realistic case, he did not consider it to be a strong one.
"The case will now proceed to a final hearing on December 14, at which we believe the council's position will be fully vindicated.
"In the meantime, the county council will continue discussions with the care home owners because the issue needs to be resolved."
MP PLeased
Commenting on the news, local MP, Simon Hart, said: "I'm pleased that this situation is a step closer to being resolved and that the families should soon have a clearer idea of what's happening. I understand that all preparations for closing the homes have been suspended.
"The hearing on December 14 is a crucial one and I shall be watching it closely. In the meantime I'm continuing to keep all those who've been in touch with me about this issue as well informed as possible."
significance
of decision
Meanwhile, the Older People's Commissioner for Wales, Ruth Marks has recognised the significance of the court's decision to grant permission for a judicial review.
Ruth commented "I am pleased that His Honour Judge Jarman recognised the distress that this situation has caused older people and their relatives, and that an early hearing date has been set.
"The decision demonstrates that the interests of older people in Wales are taken seriously. I welcome the judge's encouragement to both parties to continue to use best endeavours to work towards a solution, even before the judicial review hearing.
"We will continue to monitor with interest the outcome of the hearing."




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