Back to basics
2009 will see care operators refocusing on basic operational values, a decrease in build costs and the sector coming to terms with new legislation, advises MARTIN ROBB of property agent and advisor Christie + Co.
The next 12 months are set to prove that if you can’t drive enterprise value via financial engineering, your only alternative is to do it via improved operational efficiencies.
In many respects, the care sector is one step removed from the general consumer economy, but is clearly not immune to its affects. The fundamentals and demographics of the sector remain, it is still a needs-driven industry and there is no obvious drop-off in the number of people needing long term care of one sort or another.
While the industry hasn’t changed much at a macro-level, at a micro-level it is facing some operational issues. Although not directly related to the credit crunch, pressure on occupancy levels in both the public and private sectors is starting to be felt.
Feedback from operators in the private sector suggests it is taking longer to fill privately funded beds and the likely root cause is the slow down in the housing market. Family homes are taking longer to sell and achieving lower sale prices, so homeca