Leaders outline challenges facing residential care market
The significant challenges facing the residential care market were discussed by a panel of leaders at The Care Show 2018.
Hallmark Chair Avnish Goyal, Housing & Care 21 Chief Executive Bruce Moore and Knight Frank Healthcare Partner Kieron Cole took part in the discussion at the Birmingham NEC yesterday.
Kieron said that while occupancy and fees were on the rise, residential care providers were seeing declining profitability as a result of rising staff costs.
In a round-up of the national climate, the Knight Frank Partner said most registrations were being seen in the Midlands with closures focused in the North of England, due to unviability, and the South East, due to transfers to alternate use.
When asked what the sector would look like in 20 years’ time if there was no change in the funding system, Bruce said: “We cannot carry on as it is. We will have to professionalise care and come to a new settlement.”
The panel highlighted how providers were increasingly expanding into new care models, including extra care and retirement, in order to meet rising demand, while noting the challenging planning environment.
Bruce said that dealing with planning restrictions was becoming more difficult, while Avnish described the planning system as “horrendous” and in a state of disarray.