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Bupa boss warns of funding crisis for care homes 10 August 2011

Ray King said the number of care home places available to vulnerable people will fall unless care home providers receive the right amounts in fees.

His comments follow the well publicised news that Southern Cross, Britain’s biggest care home operator with 752 homes under its responsibility, will close after succumbing to excessive rents, along with disastrous sale and leaseback deals.

King claimed that the NHS will face major problems with beds if fees do not rise appropriately for operators.

As local authorities start to push through sweeping budget cuts, fees may start to fall even further for care home companies.

Bupa said the average local authority fee increase for the financial year 2010-11 was 0.7%, and is currently 0.3% for 2011-12.

King added: ““The NHS has got to decide what it will do to meet the ever-increasing demand for care and the higher costs.

“It may make productivity gains, but our experience is that people want more choice and control over their healthcare, so that's a supportive trend for private healthcare.

“The UK and US governments started to articulate their plans for reform of their healthcare systems and we believe that this should offer new opportunities for our businesses in the future.”



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