Healthcare Markets


ELDERLY NURSING & PERSONAL CARE


The latest data collated by the Colliers International Healthcare and Research teams shows mixed results for the elderly care sector.


We appraise care homes using trading performance. The profitability of a care home is dependent on the balance of income (care home fees) and the costs of both running the care home and providing the required level of care.


Nursing homes will generate higher fee levels due to the higher dependency of service users, but payroll costs are also higher due to more intensive staffing and the recruitment of nurses. Conversely residential care homes (without nursing) will have lower fees but lower staffing costs.


Our KPIs over the last year to H1 2017, show that residential care homes have seen pressure this year, with static fees and only a small increase in average occupancy levels. With rises in RPI in recent periods, personal care fees have seen a fall in real terms of 3%. Whilst non-payroll costs (such as utilities bills and the cost of food and provisions) have remained static, there has been a marked increase in staff costs over the last half year; it is too early to draw any great significance from this but this will be a factor to watch. Overall, profit levels have fallen.


The nursing home sector has proved a little more resilient. Whilst occupancy levels have fallen, fees have increased and there are only small variations in costs, so the picture has been generally positive for the nursing sector over the last year. Over 2018, we will be closely monitoring any potential impact that Brexit may have on nursing staff retention and recruitment.


Colliers International | Perspective


17


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28