Assessing the Financial Impact of COVID 19 on the UK Care Home Sector

Presenter: David Rowland (Centre for Health and the Public Interest) 

Abstract for the International workshop on COVID-19 and Long-Term Care systems: What have we learnt and what policies do we need to strengthen LTC systems?, 6 and 7th December 2021

Video of the presentation:

David Rowland: LTC-COVID Workshop 6 – 7 December 2021

Abstract:

In addition to creating extremely challenging circumstances for care home residents, their families and the care workforce, the COVID 19 pandemic has also threatened to undermine the financial viability of large parts of the UK care home industry.

This is because mass disease outbreaks lead to increased costs due to additional staffing requirements, new equipment (PPE), infection control measures as well as the loss of income due to a decline in bed occupancy levels.  

Not only is the financial viability of the care home sector important to ensure the current and future supply of care facilities, but financially distressed care home companies are likely to have an impact on the quality of care of residents and the experience of care workers. 

This presentation sets out the high-level findings of a financial analysis of the UK Care home sector as part of an ESRC funded project led by Warwick Business School. Based on the latest financial information prior to the pandemic, the analysis provides an account of the pre-pandemic financial health of over 4000 companies which provide residential and nursing care for 377,000 people aged 65 and over.  The analysis estimates the possible impact of the pandemic on the financial health of these companies in the absence of any government intervention.

Co-authors:

David Rowland (Centre for Health and the Public Interest) Prof Marianna Fotaki (Warwick Business School) Dr Amy Horton (UCL) Dr Aaron Gain (Warwick Business School) and Dr Derya Ozdemir Kaya (Warwick Business School)

For more information: https://ficch.org.uk

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