Round table report: Care sector navigates two-tier landscape as providers seek collaborative solutions

Our latest round table, kindly sponsored by Botham Accounting and held at Cubo in Nottingham, looked at the complexities and opportunities facing the care sector as we head into 2025.

The event brought together various stakeholders in the care sector, including care home operators, consultants, funders, financial experts and brokers.

The panel:

Graham Harper, Virgin Money
Lee Howard, Christie
Dasos Kirtsides, Shawbrook
Kenny Nelson, Adept Care Homes
Bernie Suresparan, We Care Group
Helen Cooper, Delphi Care
John Roddy, Progressive Partners
Wes Hodelin, Botham Capital
Tom Gregory, Botham Accounting
Vicky Tomlinson, Browne Jacobson
Lee Howard, Christie & Co

The discussion focused on the current state of the care sector, the challenges it faces, and potential solutions

The key topics discussed were:

Sector performance and challenges

The care sector is experiencing a “two-tier” system, said our panel, with some operators performing well (often those with a higher proportion of private-pay residents) while others struggle, particularly those reliant on local authority funding.

Staffing costs and shortages, as well as low local authority fee rates, are major challenges for many providers.

The delay in social care reform has added further uncertainty to the sector.

Funding and investment

• There is a mix of new entrants and established operators in the market, with varying access to funding and investment.
• Lenders are looking for experienced management teams when providing financing, not just capital.
• Some providers are exploring alternative models like “Opco-Propco” to separate operations and assets.

Regulatory challenges

• The Care Quality Commission (CQC) is facing significant backlogs and operational issues, leading to frustration among care providers.
• The CQC has acknowledged the need to change its approach and work more collaboratively with providers to define what “good” care looks like.
• Providers are taking proactive steps to map the CQC framework and develop their own understanding of quality standards.

The panel provided a range of solutions to the challenges.

They said providers are focusing on efficiency, staff retention and innovative approaches to overcome the challenges.

Meanwhile, collaboration between providers, lenders and regulators is seen as key to addressing the sector’s issues.

Delegates expressed a pragmatic outlook, recognising the challenges but also identifying opportunities for those able to adapt and innovate.

Overall, the discussion highlighted the complexities facing the care sector, but also the resilience and adaptability of many operators as they navigate the current environment.