COLLIERS INTERNATIONAL


Key Performance Indicators (KPIs)


SPECIALIST CARE SECTOR


THIS SECTION OF THE PAPER PROVIDES ANALYSIS OF THE SPECIALIST CARE PROPERTY AND BUSINESS MARKET, FOCUSING ON HOMES CATERING FOR ADULTS WITH LONG-TERM PHYSICAL AND LEARNING DISABILITIES.


OCCUPANCY RATES KEY POINTS


> Occupancy rates have risen 0.1 percentage points since H1 2016


> Fees have increased 4.9% since H1 2016


> Wage costs continue to increase – 0.3 percentage points since H1 2016


> Profit margins have been below 30% for the last five periods


Occupancy rates in the specialist care sector have seen significant decline over the last ten years from a peak of over 97% in 2007 to stand at 91.2% in H1 2017, a fall of six percentage points. Occupancy has steadied since the sub 90% rates seen in 2012–2013 (Figure 8). Since then they have ranged from 91–92% and now stand at 91.2%.


AVERAGE WEEKLY FEES


FIGURE 8: SPECIALIST CARE OCCUPANCY RATES AND NOMINAL & REAL FEES


Occupancy 98 96 94 92 90 88 86


H2 03


H1 04


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H1 08


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%


Specialist occupancy rates Specialist nominal fees Specialist real fees


£s


400 400 800 1000 1200 1400 1600


200 0


Fees in the specialist sector have shown positive growth over the last year, a welcome reversal of the small fall seen during the previous year. Fees have risen over the last three periods to £1,556 pppw (Figure 8). This is an increase over the last year of 4.9% in nominal terms and 1.6% in real terms, broadly in line with the increases seen in the nursing care sector and outstripping the real term fall in personal care fees.


Since the base year, nominal fees have increased by 47.3% (still by far the lowest of the three sectors) and have shown a small (sub 1%) loss in real terms. This is in contrast to the 12–14% real term increases seen in the elderly care sector.


Rising fees may be partially reflective of the continued move towards placing lower dependency clients into supported housing services, leaving a potentially higher acuity client base in registered settings. We are generally seeing operators face resistance to fee increases for existing clients, due to budgetary constraints.


08


HEALTHCARE MARKET REVIEW 2017 | COLLIERS INTERNATIONAL


Source: Colliers International, Haver Analytics


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