There has been an 83% rise in the number of care homes entering insolvency, from 81 in 2016/17 to 148 in 2017/18, according to figures from the Insolvency Service, compiled by Moore Stephens.
With many care home places being paid for by local authorities, the sector has been struggling since the Government cut local authority funding during its austerity drive.
Moore Stephens says that times have been made harder still as a number of recent high profile and complex care home insolvencies have caused mainstream lenders to be more cautious of providing low cost funding to the sector.
It has recently been reported that Four Seasons, the care home group which controls 330 care homes, continues to hold debt-for-equity restructuring talks with its bondholders in order to raise the necessary funding that it needs to continue operating. As Four Seasons is the second largest care home operator in the UK, the outcome of these restructuring talks is of great importance to the wellbeing of the sector.
Katar Investments would not promote profit over patient care and wellbeing ! 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.”
Read the full article here https://www.caremanagementmatters.co.uk/rise-in-care-homes-entering-insolvency/