AVERAGE WEEKLY FEES
We have seen the strong growth in nursing fees noted last year continue in the current set of KPIs and encouragingly, the personal care sector has also seen an increase.
Over the year to H1 2018, fees in the personal care sector have increased by 5.1% in nominal terms and 1.6% in real terms to stand at £564 pppw. However, due to the static position last year, when looking across the two-year period, this has produced a real term fall of 1.5%. Since the start of the dataset in 2003, personal care fees have increased by 74.2% in nominal terms and 13.9% in real terms.
Nursing fees have continued the strong growth seen across our last two publications, rising by 5.6% in nominal terms and 2.1% in real terms over the year to H1 2018, to stand at £796 pppw. Over the three-year period from H1 2015, nursing fees have risen by an impressive 21.4% (12.0% in real terms). Prior to 2017, our dataset has generally shown increases in nursing fees lagging behind those seen in the personal care sector. However, nursing fees
edged into the lead in our last review and now show an increase of 77.7% in nominal terms and 16.2% in real terms since the start of our dataset (see Figure 2).
The 2016 increase in FNC contributions is likely to continue to positively impact nursing fees. We also note that some nursing homes have secured an element of CCG funding at rates above the prevailing local authority fees. In addition, we have seen a number of nursing facilities converting to personal care; this may be improving the bargaining power of nursing operators in those areas.
Assessing both occupancy levels and fees together, ‘total income’ peaked for both sectors in 2012 before levels fell, not moving beyond this peak again until 2015. Both sectors have seen growth in ‘total income’ in six out of the last seven periods.
With public sector budgets likely to remain under pressure, operators will continue to seek privately funded residents and the cross subsidisation they provide. The recently announced real- term increases in NHS funding may have an impact on nursing operators going forward given the priority to achieve “better integration of health and social care”.
FIGURE 2: AVERAGE WEEKLY FEES IN NOMINAL AND REAL TERMS NC Average Weekly Fees
NC Real Fees
200 300 400 500 600 700 800 900
PC Average Weekly Fees
PC Real Fees
Source: Colliers International KEY POINTS NURSING CARE
HAS INCREASED 5.6 PERCENTAGE POINTS SINCE H1 2017
PERSONAL CARE
INCREASED 5.1 PERCENTAGE POINTS SINCE H1 2017
NURSING SECTOR CONTINUES TREND OF
STRONG FEE GROWTH
COLLIERS INTERNATIONAL 9
£s
H2 03 H1 04 H2 04 H1 05 H2 05 H1 06 H2 06 H1 07 H2 07 H1 08 H2 08 H1 09 H2 09 H1 10 H2 10 H1 11 H2 11 H1 12 H2 12 H1 13 H2 13 H1 14 H2 14 H1 15 H2 15 H1 16 H2 16 H1 17 H2 17 H1 18
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