Katar Investments would not promote profit over patient care and well being !
Founding partner and director of Katar Investments LTD Samuel Tarling :
“The statistics do not lie , they are facts , for this reason we at Katar Investments LTD would never promote investment into an industry that is failing across the board, furthermore our moral compass would prevent us from offering our clients an investment that promises high returns for long periods which are clearly not sustainable and would mean that patient care would have to suffer in order to meet the commitment to investors.”
“No matter how this is marketed or dressed up to look good, if a business is not profitable a cash injection will not suddenly make it profitable, selling off care home rooms to investors is a little more than a short term fix that will undoubtedly fail, the inherent problems with the industry will remain long after the money runs out.”
Unfortunately developers and agents have not considered the patients when promoting care home investments, the turmoil in the care home industry is well documented with care home operators, trade unions and charities telling Theresa May for months that the care home industry is in crisis and needs help.
A staggering 380 have been declared insolvent since 2010, according to the Insolvency Service. The number of failures each year has risen sharply since 2010, when 32 businesses failed. In 2015, 74 were declared insolvent, while another 34 failed in the first six months of 2016.
Care homes are struggling because of a fall in the amount that councils pay towards fees for residents at the same time as costs are rising, driven by the government’s “national living wage”, which meant that workers aged 25 or over must be paid at least £7.20 an hour from April 2016. This led to an increase in payroll costs of about 5% for most businesses last year. This rise would have been problematic anyway, but local authorities are also reducing how much they pay towards social care after seeing their budgets cut by up to 50% as a result of government austerity measures.
Large companies are also ailing. Four Seasons, the biggest care home operator in the country with more than 400 properties, is the most at risk. It recorded a pre-tax loss of £28m in the three months to the end of September 2016, the most recent financial accounts available.