Alice Wiseman, director of public health at Newcastle Council, said: “Unfortunately the outcome of the report comes as no surprise.”
The council said it was in contact with the CQC and had commissioned a review even before the inspection “following concerns raised by staff and the public”.
It informed S4H in July that it was “seeking mutual termination”, but said the private company would still run the service in the interim.
The local authority added that it had seen improvements in the service since the inspection.
Ms Wiseman said: “Procurement of a new provider began last week and we are confident of quickly finding a new supplier.
“We wish to reassure the public that the council, S4H and the new provider (once identified), will endeavour to minimise any disruption to patients and staff as the service and staff transfer over.”
The service was previously based at New Croft House in the city centre, before moving to Hadrian House where the inspection took place. It is now based at Ravensworth Terrace.
