By Debbie le Quesne

Gulf between private fees and authority fees ‘increasing’

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Market reports often tell us what we already know: The gulf between Social Services and private fees in the south continues to grow. What a surprise!

In the winter market appraisal by healthcare property consultants ES Group, it notes, however, that “we are also seeing homes in all areas achieve more private fees, with some operators being more successful at grasping the nettle.”

Some operators apparently are now seeing the rewards of capital expenditure investment – good news!

ES states: “We remain of the view that for many homes some Social Services fees will be unavoidable and there is no harm in that, but clearly operators need to have a strategy of investment in physical standards and marketing to maximise their share of private fees.

Figures show that in purpose built accommodation for the elderly bed yields before tax and other outgoings rank from £15,000 – £25,000; in older purpose builds the figures range from £8,000 – £15,000; while other non-purpose accommodation is as low as £4,000 – £7,000.

Specialist care beds are showing returns between £30,000 – £45,000.

It must be noted this in not a localised summary of economies, but despite regional differences, it must add to a general feeling that things can only get better.




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