Care home profits in south under less pressure

    The profit margins of care homes in the south east are under
    less pressure than their northern counterparts because of the
    higher ratio of self-paying residents.

    That is the conclusion of Laing and Buisson’s ‘Care of
    elderly people market survey 2001’. It says: “Self-payers
    in prosperous areas of the south region reach 50 per cent or more,
    compared with the national average of 30.4 per cent in 2001 across
    the UK.”

    Glenys Jones, chairperson of the Association of Directors of
    Social Services’ older people’s committee, said she was
    surprised profit margins in the south east faced less pressure
    because a number of homes had recently closed down as they were
    financially unviable.

    She told Community Care that people can sell their
    homes for much more money in the south east: “There are many more
    self-funders in the south east because the property values are so
    high. A small terrace in the south east is worth so much more than
    one in the north.” 

    She added that the affluent population of the south east might
    add to the higher number of self-payers in residential homes
    because their children contribute towards their fees. 

    Laing and Buisson’s survey also found that occupancy rates
    of private care homes increased by 2-3 per cent. Nursing home
    occupancy averaged 91.3 per cent in the UK, residential homes was
    90.4 per cent, and dual registered homes was 90 per cent as at
    April 2001.

    For the second year in a row the number of older and physically
    disabled people in residential homes in the UK remained virtually
    unchanged at 475,000.

    Care of elderly people market survey 2001 from 020 7833




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