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
9123. www.laingbuisson.co.uk