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Healthcare KPI Report

Elderly Care Homes Key Performance Indicators 2015/16

JLL’s 2016 survey provides key performance indicators on fee levels, occupancy, staff costs and profitability. The extensive sample covers a wide range of care homes run by a mix of corporate and independent operators across all regions.


After several years of margin pressure, there are growing reasons for optimism. Fees are rising in all British regions and often ahead of inflation, whilst occupancy levels are also improving in all bar one region.

The Elderly care homes market is also polarising, as the changing elderly demographic is not only much wealthier, but also more discerning in their requirements for quality and service.

The gap is widening, 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, whilst the average social care fee increased by 2.3%. Underlying wage inflation, predominantly driven by the introduction of the National Living Wage and a chronic shortage of nurses mean that care homes reliant on socially funded customers are still experiencing margin squeeze whilst those able to command premium fees are better able to protect their margins.

The results from this survey, allied to positive investor and lender sentiment, send out a strong signal to the market. The care home sector continues to offer the prospect of solid returns for those committed to quality and investing for the longer term.

Please contact us to discuss these results with you in more detail or for more information about our retirement living report.​​