Consolidation predicted for homecare

Posted on February 1st, by editor in Caring Times. No Comments

More than half of the homecare funded by social services is now provided by independent operators, according to a new report, Domiciliary Care Markets, published by Laing & Buisson. In 1993 the share was just 2 per cent. This rapid expansion has been achieved by a huge increase in the number of small operators, encouraged to some extent by local authority purchasers who felt that best value could be achieved by encouraging as many agencies as possible to compete for their work. However, this trend could be reversed according to the report¹s author, Philip Mickelborough. From July 2002 National Minimum Standards and new regulations passed under the Care Standards Act will apply to all business providing personal care in people¹s homes. The effect would be to introduce new procedures and training requirements which will be harder for smaller agencies to meet. There will, therefore, be pressure upon them to consolidate and achieve economies of scale. Commentators from the care home sector, which expanded rapid

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