Care Markets

E3M, the representative body for social enterprises in health and social care, has called for an Ofcare’ style body to fulfil a similar role in economic regulation of care as bodies such as Ofwat for water and sewerage and Ofgem for gas and electricity. Other representative bodies, however, argued there was no need for more regulation in the sector. The call came at roundtable meeting organised by E3M in London last month. Whether the economic regulator would be a new or existing body such as Monitor, its responsibilities would include the establishment of a nationwide methodology for determining reasonable prices for residential and home care services, based for example on Laing & Buisson’s fair price’ model. Chief executive of the English Community Care Association (ECCA) Martin Green, said he was unsure that another regulatory body would be helpful.

HM Revenue and Customs is currently investigating 90 large residential and homecare providers and has identified high levels of non-compliance with paying the National Minimum Wage (NMW). The government department has focussed its efforts on the care sector, concentrating on the salary payments of around 45 of the larger care providers and 45 major domiciliary care providers, according to Community Care.

Leading think tank, the King’s Fund, warned last month that the reforms to adult social care under the Care and Support Bill (CCMn July 2012) and the implementation of the Dilnot fee cap will not solve the funding challenge for social care. In its report Paying for Social Care Beyond Dilnot, the King’s Fund argues that, while a cap will provide welcome protection for people from the catastrophic costs associated with long stays in residential care, much more should be done to meet mounting financial pressures. The report stated that with spending continuing to fall and demand for services increasing due to demographic pressures, there needs to be a stronger focus on the challenge of eligibility – ensuring that more people are able to access the right level of support. It also raised concerns that unmet need, and its impact on carers, will place further pressure on an NHS already under significant strain, and argued that it is time to look beyond the Dilnot report at how to secure enough resources to meet current and future needs. The report identifies four main priority areas, which build on the foundations of Dilnot’s recommendations (CCMn July 2011) and which could provide a new roadmap for social care reform:

A study by the Saïd Business School at Oxford University showed last month that care networks are poorly linked and this can lead to poor care for older patients. The school’s Professor Louise Fitzgerald, co-author of a new book on managing networks in healthcare, warned that lack of effective coordination between clinicians, managers and officials is damaging the government’s ability to deliver its goal of fair, high quality, integrated health and social care services for elderly people.’

Following its acquisition by Mitie for £110.8m last year (CCMn November 2012), thehomecare provider Enara contributed revenues of £43m for the first six months under its new owner, the facilities management company’s results for the year ended 31 March 2013 show. This is more or less in line with the full year revenue contribution of £93m projected by Mitie at the time of acquisition in October 2012. Under the auspices of Mitie’s newly-formed healthcare division, Enara recorded an operating profit of £5.7m or 13.3% of revenue, a lower rate than in past years, but still continuing the company's record of delivering profits significantly above the sector average for homecare providers. A post-tax profit of £3.9m was recorded. Mitie reported that the acquisition of Enara was an ideal entry point to grow within the wider healthcare market’. The directors added that the integration of the homecare operator was going well, with the business performing ahead of expectations.

Maria Mallaband Care Group (MMCG) has secured £50m from Apache Capital Partners to develop eight luxury care homes.A spokeswoman for the operator told CCMn...

s an influential parliamentary group calls for reforms in the way adults of working age are cared for, one investor has backed the progress...

Children’s care and education provider Acorn Care 1 reported significant losses for the year ending 31 August 2012. Despite increasing turnover from £76.3m to £110.6m,...

The Department of Health (DH), NHS England, Local Government Association, Association of Directors of Adult Social Services, Care Quality Commission and the National Forum...

Homecare and assisted living service provider Carewatch Holdings Limited has reported revenues of £51.5m for the year ended 31 December 2012. This marks only...