Funding
Care in 2022: An overview and what this means for funding
Jimmy Johns, director at Christie Finance, examines the pressures that care providers find themselves under, and discusses the implications for funding
As we approach the second half of 2022 and get used to living with COVID, it looks as though plenty of change will take place within the care sector in the forthcoming years. It would therefore be prudent to reflect on the last 12 months and to assess the next stages for the sector. For operators, there are key areas that remain high on the agenda that have not changed during pre- and post-pandemic times and, in fact, are simply heightened during tougher, unpredictable times. These areas are also the main topics of conversation with funders. Conversation with funders can be very
focused on a particular ‘flavour of the month’; therefore, it is always key to be aware of the particular topics that are being discussed in the sector by regulators, the government, and various news outlets.
Staffing
Staffing provided a concern for many businesses due to the outcome of Brexit and the UK leaving the EU. Travel restrictions have now been added due to the changes in legislation, and there have been visa issues due to changes in immigration laws, with both factors providing even bigger challenges for businesses when recruiting, or even retaining, staff and continuing to operate at full capacity. There was further concern during
November 2021 as it became mandatory for staff to receive vaccinations. At the time of writing, there are reports of more than 90 care homes declaring a ‘red alert’ due to staffing issues where employees are either taking time off work due to sickness from Covid-19, general sickness issues, or due to having to isolate.
June 2022
www.thecarehomeenvironment.com
The care sector relies heavily on its labour force and, in common with the NHS, staff have a passion for providing high levels of care for their patients. However, recruiting and retaining staff either comes at a cost or requires creative incentives for them to stay. The argument between fees and costs has continued to be a popular topic. As already stated, this is an area which is labour-intensive, and which forms the largest part of costs in the care sector. In 2022, this pattern is expected to increase further, with the National Living Wage having increased in April. Costs
Historically, lenders have taken a pessimistic view of poor CQC reports. They have now, however, developed their approach
have already been escalating due to the introduction of PPE, agency needs, and premises costs; however, the government has provided further funding through a £60m package to support local authorities with ventilation costs. This is on top of the £388m infection control and testing funding package announced in 2021.
Regulation
Aside from the daily management of staff, as an operator you will know of the additional pressures that the government and its regulators have brought to the sector. The longer you have been in the care sector, the more experience you will have in recognising the nuances that it brings. Inspections can cause a huge bearing on your business, for example, as potential high fees and potential losses of income can come into place should restrictions be imposed on your ability to increase residence.
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