Reality of care home costs begin to take hold for Brits
Care homes across the UK continue to provide an important service for hundreds of thousands of UK residents that can no longer care for themselves. However, the financial realities associated with the day-to-day running of these facilities are getting harder and harder to avoid.
Increasing pressure on local authority finances combined with growing demands about the level of care which should exist have caused a tension in the care home sector. The truth is that it is very difficult for those running the care home to keep standards at the necessary level when finances are stretched.
Do we really know how much it costs to run a care home?
The subsequent result is that costs for placing a friend or family member in a care home are now at a point that most people underestimate.
New research from the latest Partnership Care Index suggests that 37% of over-45s underestimate the annual cost of a residential care home by as much as £7,000.
Such a figure shows just how large the gap is between perceived costs and actual costs for so many people. The disparity indicates that a number of people may be in for a huge shock when they eventually come to place somebody in a care home, but it also emphasises the reality of running one of these facilities.
Simon Thomas, joint administrator at Moorfields Corporate Recovery, hinted at the consequences for the financial pressure which many care homes are facing when he spoke of the pressure which is “forcing many homes to close as they struggle to sustain ongoing care standards”.
Poor inspection reports and ongoing issues with regulators are among additional problems that the industry faces. For many of these operations, the option of administration may become the most logical route to take.
Moorfields Corporate Recovery have over 20 years experience of dealing with the care home sector, leading those involved through the process of administration as we strive to achieve a sensible financial solution.
By Phil Smith