Asset values shrink as profit falls

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

Long term care providers continue to battle with higher costs and inadequate fees. Jim Fogden says the sector is facing a scenario of massive under supply of beds. There is currently a declining number of care home beds for elderly people in the UK, with more homes closing due to inadequate profits. The increase in wage costs, along with little increase in income from residents’ fees, has caused the smaller, less profitable homes to close and put a squeeze on the entire care home industry. Health care developers are continuing to build quality replacement stock but smaller homes are closing faster than new homes can be completed. With the proportion of elderly people in the population increasing, and due to increase dramatically with the anniversary of the end of the First World War, the net effect is a potential massive demand for care beds, coupled with a massive under supply. With most of the health care market being debt funded, banks and other lending institutions are becoming more and more wary of inve

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