Keep Your Care Home's Cash Flow Coming

Insolvencies among care operators are at record high.

For months now, care providers have been worried about the current situation, with the industry in a critical state and in desperate need for help.

The Guardian reported that, since 2010, more than 400 care homes have collapsed - 55% of which are ran by SME operators.

With the average age of the population rising every year, it’s been estimated that there will be an influx of over 70,000 extra care residents, which means that we require care homes to grow rapidly.

It’s been estimated that by 2035, almost 190,000 elderly people will require care. With an 86% rise in demand for care expected, care providers are doing everything they can to ensure steady business development.

Amid the backdrop of rising costs and cuts to funding in the care sector, care home occupancy rates have increased for the fifth consecutive year and are at their highest level in the last decade.

There is a lot of pressure for organisations to provide quality care, whilst having to maintain financial stability during a period of uncertainty. It’s understood that there are unique challenges within the care sector, and because of continuing legislative changes, it’s often difficult to develop the business.

The audience from this year’s Dementia Care & Nursing Home Expo revealed that of the 694 decision makers who provided feedback, 78% claimed to be actively planning on opening further residential homes in the next 3 years. Of these providers, 85% admitted to requiring the assistance of financial aid in order to help in the developments and to lend a hand in managing the demand as efficiently as possible.

It came as no surprise to us that many care providers have started turning to financial services, which can not only offer funding, but can also prescribe ways in which costs can be cut and spent better elsewhere.

Additionally, it’s important to consider first-time operators who are looking to acquire in the sector. Due to the rapidly ageing population and the estimated demand, of the 70,000 extra bed spaces required by 2025, an increase in the number of care homes is to be expected. Much of these are presumed to be taken upon by the private sector, many of which often don’t have the same resources available as government funded operations.

It’s vital that financial services are carefully chosen, in order to be provided with the most cost-effective solutions. In order to allow for successful growth, which would enable the demand for care to be met, care providers are in desperate need for high standards of accounting to be offered to them.

The demand for care, and the financing to support it, looks set to increase in the upcoming years. Whilst it has proved difficult for operators to run their services, in the last few years, new developments and innovation in the sector is leading to restored faith in the sector.

For more information on financial aid and to keep up-to-date with the latest industry trends, make sure to attend the 200 cutting-edge exhibitors, 100 CPD accredited seminars & 35 masterclass sessions at The Dementia Care & Nursing Home Expo 2019! Register now for your free ticking - simply click here!

If your company offers financial solutions to care homes and domiciliary care, and are interested in exhibiting to over 5,500 care home & home care decision makers attending our next show, don’t hesitate to contact me now on 0117 990 2109, [email protected], or simply send me a message on LinkedIn.