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News Release

London

JLL Healthcare comments on report into care costs


London, 15th September 2016 - Commenting on a report from the Nuffield Trust and the Kings Fund into social care, Phil Schmid, Director in JLL’s Healthcare team, said: “A growing elderly and wealthy population is leading to polarisation in the care home market. Our own recent analysis of data from across the sector showed that there is an increasingly larger gap between the private pay market and the socially funded market, with private pay supporting above inflationary increases in private fees by up to 5% per annum. This is in turn driving investment in the self-pay market from operators seeking to provide modern facilities and levels of care with operators reliant on social care funding unable to compete as costs rise faster than fees facing pressures just to stay solvent.

“While we have seen some fee increases from local authorities and a 39% increase in the Funded Nursing Care contribution, we will continue to see strain across the NHS if there isn’t a concerted effort to address the social care funding gap. Especially as care home operators also continue to grapple with wage inflation, a lack of qualified staff and an increasing regulatory burden.”