Colliers Spring 2014 Care Homes Review

Colliers have published their 6th monthly review of care home performance. Although published in Spring 2014 it actually covers the second half of 2013.

The research focuses on the following key drivers: occupancy rates, weekly fee rates, payroll costs, non-payroll costs and profit margins (EBITDAR).

In summary the research shows occupancy rates have risen for nursing care:

• (average 90%)
• residential care (89.6%)
• specialist care (91%).

Average weekly fees fell by 2% in nursing and residential care but increased by 4.5% (against the previous 6 months) :

• £648 (nursing)
• £518 (residential)
• £1,490 (specialist)

Wage costs are marginally lower than the previous six months and, as a percentage of revenue:

• 56.3% (nursing)
• 50.9% (residential)
• 52.1% (specialist). Non-payroll

costs rose slightly:

• 14.8% (nursing)
• 17.3% (residential)
• 14.7% (specialist)

Finally profit margins are described as “remaining steady” for older people services and decreased for specialist care homes:

• 28.7% (nursing)
• 31.7 (residential)
• 32.7% (specialist).