Wednesday, 11 November 2015

The Care Collapse: The imminent crisis in residential care and its impact on the NHS

The Care Collapse: The imminent crisis in residential care and its impact on the NHS Research assessing the state of the residential care industry, including an analysis of its future financial viability.

We do not believe it is an understatement to say that Britain’s residential care sector is in crisis. Providers are being faced with an unsustainable combination of declining real terms funding, rising demand for their services, and increasing financial liabilities. Our research projects a funding gap of over £1 billion for older people’s residential care alone by 2020/21, which could result in the loss of around 37,000 beds. This is greater in scale than the collapse of Southern Cross in 2011, which affected 31,000 older people.

Given the perilous state of the industry, there is no private sector provider with the capacity to take in the residents who would be affected by the loss of other providers’ beds. Consequently we believe the worst outcome is the most likely: that the vast majority of care home residents will end up on general hospital wards. We project that if all these care home lost beds were to flow through to hospitals in this way, the annual cost to the NHS would total £3 billion. ResPublica

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