Care Home Finance In producing this report, which for the first time includes Northern Ireland and children’s homes, we have identified a number of norms. This helps us provide further support to our customers through being able Get to question any outliers to these norms that they may be in touch Whether you’re considering reducing your energy costs, increasing your experiencing. We are proud to support this important, and growing, fee rates, occupancy levels or bed numbers, our healthcare specialists based throughout the UK and are available to visit you on site to sector and are I was enthused to see that the majority of operators we discuss your ambitions for your care home. visited were extremely optimistic about what the future holds.
Care Home Benchmarking Report 2016/17
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This document has been prepared by National Westminster Bank Plc and its affiliates (together “NatWest”) for the intended (the “Recipient”).This document has been delivered to the Recipient for information purposes only. It does not constitute an offer or invitation for the sale, purchase, exchange or transfer of any investment, loan or asset and is not intended to form the basis of any decision or evaluation by the Recipient and should not be regarded as a recommendation by NatWest that the Recipient should participate in any transaction. The Recipient should seek its own financial and tax advice and perform its own independent investigation research and analysis, and shall rely solely on its own judgment, review and analysis to determine its interest in participating in any transaction. Nothing in this document should be construed as legal, tax, regulatory, valuation or accounting advice by NatWest for the Recipient; all of which the Recipient acknowledges that it should seek from its own advisors.
NatWest has vast experience in helping care home providers develop their businesses across the United Kingdom and know what good care looks like. The content of this document reflects prevailing conditions and NatWest’s views as at this date. NatWest reserves the right, but shall not be obliged, to revise, update or replace such content. NatWest has prepared this document based on information obtained from a number of different sources and assumed, without independent verification, the accuracy and completeness of all such information. No representation, warranty, undertaking or assurance of any kind, express or implied, is or will or has been authorised to be made as to the accuracy or completeness of the document. Without prejudice to the generality of the foregoing, nothing contained in this document is, or shall be, relied upon as a promise or representation as to the achievability or reasonableness of any future projections, estimates, prospects or returns contained herein (or in such other written or oral information provided to the Recipient). The issue of this document shall not be deemed to be any form of commitment on the part of NatWest to proceed with any transaction.
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LONDON AND THE SOUTH EAST Nursing & Residential Homes Care homes in London and the South East are the most modest-sized in England, with an average of 31 and 38 registrations in residential and nursing homes respectively. In a highly urbanised area of the country, that has high population density and keen demand for residential building land, it is not surprising there are fewer larger homes. These homes also have comparatively fewer en-suites than most other regions. Given the pressure on service provision, the area also has the highest usage of agency staff, with 59% of residential and 67% of nursing homes using this type of staffing. Average spend among nursing homes is significantly higher than the average figure for England. Food cost per bed is marginally higher among nursing homes, with residential homes the same as national averages. As expected, maintenance costs are higher than most areas. Both types of homes have high occupancy levels, possibly reflecting an undersupply of beds across the region. The make up of occupants in the homes, was 50/50 local authorities and private. We had expected the fee rates to be higher than other regions, however they are broadly similar. Altogether, staff, agency, food, heat, lighting and maintenance account for the majority of costs. Against turnover it would indicate this region to be one of the more profitable to operate, which is reflected by the views of owners. Sentiment among owners concerning future trading conditions nearly match those of England as a whole. A quarter of residential home owners think conditions will improve, while two thirds think they will remain stable over the coming year. In nursing homes, the view was more optimistic, with nearly half of owners predicting an upturn and a further half seeing stable conditions. Specialist care homes Homes that provide specialist care in this area are among some of the best-rated in England, with 90% receiving good inspection results. Average fees are high, although occupancy levels are at 90%, which may have been influenced by new units still being filled. Agency use stands at 70%, which is well above the national average, yet spend on agency fees averages at £23k, beneath the national average of £28k per year. Staff costs are the highest in England, although these are offset by lower energy and food costs.
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