Recession causing closure of private care homes

| April 10, 2009 | 0 Comments

The Local Government Association survey of social services departments across England have found that the recession has had a big impact on the private care sector, with 15 percent of authorities indicating that they have already experienced pressure due to the closure of private homes.

With further closures imminent, council leaders have warned that businesses under strain from the recession would mean an intense shortage of places for both older and disabled people.

Councils are doing what they can by bringing in a number of new initiatives such as speeding up payments and aiming to alleviate financial pressures for operators, with one council setting up a public private partnership (PPP) project in order to build a new care facility.

This form of direct involvement may be a sign of the times as Poole have introduced a new policy of making payments every 2 weeks, which may be a measure that will be introduced more widely.

These measures are needed as it is far easier and quicker for councils to make concessions and contributions towards private nursing homes rather than having to extend their own premises.

It is clear that many more homes are struggling with an estimated 75 percent about to struggle with financial issues over the next coming months, however whether the recession has hit the sector just in the short term has yet to be seen.

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