Owners urged: ‘act now to avert crisis’

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

Nursing and residential care homes across the South West should act now to avert a potential financial crisis, according to business and insolvency accountants BKR Haines Watts. Rupert Mullins, a partner at BKR Haines Watts Bristol practice, said that about 40% of all private and residential homes were expected to face financial problems over the coming year. “The problems will arise as local authorities struggle to find the money to fund places, and be compounded by a variety of economic factors which are all contributing to spiralling costs and falling profit margins,” Mr Mullins said. “Many homes, particularly the smaller independent ones, might not be able to survive unless they take early advice from business recovery experts who can help in business planning, restructuring and, if necessary, the refinancing of their business. Nursing and residential homes have traditionally had a high percentage of low-wage staff but employers are now feeling the impact of the minimum wage legislation, the increases in

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