The Care Quality Commission (CQC) in the UK has urged Gradestone Limited to make immediate improvements to standards at its Primrose Care Home in Houghton-le-Spring, Tyne and Wear.
The CQC inspectors, who visited the care home on 5 April 2012, found that the provider was failing to assess and manage risks relating to the health, welfare and safety of residents and to check the quality of services being provided.
CQC North East regional lead Sheila Grant said there are standards that everyone should be able to expect and providers have a duty to ensure they are compliant.
"This warning sends a clear and public message that Gradestone Limited needs to address these issues as a matter of urgency or face serious consequences," Grant added.
"Our inspectors will return to Primrose Care Home in the near future and if we find that the provider is not making the required progress we won't hesitate to use our legal powers to protect the people who live there."
The care home failed to conduct regular audits to care plans and medication records, and was not holding regular staff and relatives meetings, which it had previously agreed to introduce, according to the CQC.
The inspectors also found that the provider was failing to regularly review health and safety and staffing records and to compile proper action plans to tackle areas in need of improvement.