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Friday 3 June 2011
Hampshire Care Association warns that more care homes could be in financial trouble
The Hampshire Care Association (HCA) has warned a combination of increasing red tape, spiralling costs and councils short changing private care homes over fees could land more firms in trouble.
Neil Sykes, chairman of the HCA, which has 150 members, said: “With the direction that social care is travelling it would not be unreasonable to see more providers in trouble. For the first time in a long time up and down the country they are going into administration.”
He said funding was the underlying problem with local authorities driving down prices year on year so they were now in Hampshire between 25 and 30 per cent adrift of a “fair” market rate, about £560 for a residential bed.
He said care home providers were facing additional rising costs with the Care Quality Commission raising bed fees by eight per cent this year, about £120 to £165 per bed, and the Government hiking employer’s national insurance.
Mr Sykes added: “The financial pressure is increasing month by month. A lot of it is driven by central Government agenda.”
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