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Increasing costs of food, property, and staffing decrease average profit margins of care homes

  • Kirsty Kerr
  • Oct 25, 2019
  • 1 min read

Over the past ten years, the average profit margins of care homes in the UK has dropped as costs of food, property, and staffing have increased. As the senior living property market continues to grow, it could be beneficial to provide both low-acuity assisted living for patients who have fewer care needs and need less supervision and high-acuity care for patients who need more care and more supervision on the same site to try to cut some of these costs.


Recently, the largest cost challenge that care home operators have faced has been the cost of staffing. Staffing costs have increased 50% over the past ten years in unison with a rise in the National Living Wage, which is currently set at £8.21 per hour but will likely continue to rise following commitments by both main political parties. As it has become harder to find qualified staff who are willing to work in care homes at competitive rates, care home operators have begun to rely more heavily on agency staff. Often, this comes at a substantially greater cost to the care home and possibly creates issues around quality control. 


Due to these challenges, average profit margins for care homes has decreased by 5% over the past decade (Pamben, "Care Home Profitability Dented Due to Rising Costs"). It is vital for care homes such as Bromson Hill Nursing Home, based in Ashorne, Warwickshire, to find ways to continue to earn a profit so that they can continue to provide the best care to their residents as the demand for elderly care continues to grow.



 
 
 

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Our Fees: Information and Support

Here at Bromson Hill we understand the difficulties of searching for a care home that fits for you. Finances can be one important aspect in finding a perfect care home. We put our residents needs first in terms of supporting and giving guidance in this area, whether it's you searching for a care home or you are searching for a loved one. We have provided the information to see if you are entitled for funding from your local authority below. In our FAQ, we also address questions you may have concerning this subject. If you have any more questions, please contact us via email or phone call at the address provided below. We would love to answer any questions and find ways to support you if Bromson Hill is the right fit for you! 

 

Our fee rate starts from £1150 per room. In the event you are wholly or partially funded by social workers, please email or call the Home for more information. The Home retains the Funded Nursing Care to pay for our nursing costs and this is made clear in our contracts.


We aim to keep our charges in line with other similar homes. Depending upon your ability to pay, your local authority may pay some of the costs towards your care. Your local authority will assess your income including your pension and benefits as well as any savings you may have and possibly your home if nobody else lives with you. The value of your home will not be counted towards this until 12 weeks after your admission to permanent nursing or residential care.
You may also be entitled to other benefits, which include Attendance Allowance and Pension Credit. For more information, please contact the Benefit Enquiry Line on 0800 88 22 00 or speak to your GP, nurse or indeed feel free to call us for more information.

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01926 651166

Ashorne, Warwick CV35 9AD, UK

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