Julie Hopkins, Albert Goodman's Care Sector Business Developer and Consultant, shares her thoughts on the funding outlook for the sector.
Government funding programmes have helped care providers protect capital and rebuild through the pandemic, and now we are on the road to recovery, subject to variant management. Providers are now taking the next step, which can be a combination of rebuilding working capital, or expanding organically or through acquisition.
In order to grow your care business, it will be important to access capital and demonstrate to your funders that you have a resilient and agile proposition. An experienced team, and strong business plans that are regularly revisited, will add weight to growth and business continuity plans.
On the other hand, as funding options change and compliance evolves, some providers are deciding to bring forward their succession plans. This involves careful tax and retirement planning, to ensure the most efficient and practical business structures. It is also important to keep abreast of Government consultations as they seek to fund the pandemic going forward, since this may also have implications for succession and retirement planning.
The market is also seeing an increase in the grouping of care providers with less than 25 beds, in order to maximise bed capacity for funding strength. This is alongside corporate providers expanding their new development programmes, and an increase in supported living provision.
Domiciliary care and live-in care continue to expand, with independent providers and the growth of the franchisee offering across the UK.
Demand for care provision continues alongside the growth in strategic investment from stakeholders, as we await the Government's funding plan for social care. Watch this space!
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