A recent report shows that one in eight care homes in the UK are facing financial ruin.
The Care Quality Commission (CQC), the independent regulator of health and social care in England, has registered nearly16,000 care homes in England. But the Care Sector is facing tough times because of rising costs and a lack of funding from local authorities, with smaller homes being impacted the most.
The number of care home businesses becoming insolvent has increased steadily over the past five years. Figures from the CQC in October showed 2,444 residential care homes closed between October 2010 and December 2015, with 1,433 of those being smaller care homes.
Staff costs, which account for approximately sixty per cent of care home expenditure, have risen sharply, with the increase in the National Living Wage to £9 an hour in increments by 2020, adding to the financial pressure on care home operators.
Together with our partner business, BM Advisory, our experts to the Care Sector are skilled at reviewing and refining complex financial and operational issues that affect performance. The solutions we provide are tailored to each business and the environment in which it operates, and we work with care home operators to implement the changes needed to set their troubled business back on the right course.
For further information about how we can assist your business in the Care Sector, contact Steve Govey in the first instance, or your usual Beavis Morgan Partner.