Christie & Co: Buying a care home? Here's what you need to consider

Are you considering buying a care home? Setting the right foundations and making the right decisions is crucial for long-term success. Here are eight things to consider before you get started.

A TURNAROUND OR A BUSINESS TRADING AT ITS FULL POTENTIAL?

Opportunities in the market broadly fall into two categories: those with the potential to add value but will require know-how, capital investment and time, and those that are already trading well with solid occupancy levels and a stable staffing team. Both types of acquisition provide routes for growth, but in very different ways.

WHERE DO YOU WANT YOUR HOME TO BE LOCATED?

The wider your geographical search, the more options will be presented to you. Whilst distance can prove more challenging, to lead the team and influence the business, the increasing use of technology will greatly assist your ability to provide leadership and strategy and help to manage your time commitment to the new business. Understanding the level of involvement of the previous owner and the capability of the staffing team will also be of great importance for the transition.

WHAT CATEGORY OF CARE WILL YOUR NEW HOME OFFER?

What category of care are you targeting? If you’re already an owner, do you want to stick with the same client group, or would you like to branch out and acquire a care home with a different category of care that complements your current homes?

Availability of nursing staff, the level of self-funded clients, and the layout of your target care home are key considerations.

HOW WILL YOUR CLIENTS BE FUNDED?

Does the location you want to look in support a self-funded client group, or will you be dependent on local authority fees?

Not only is there a large disparity between private pay clients and those funded by the local authority in certain parts of Devon, but there are also big differences between the individual local authority fee levels in the county, too.

CONSIDER YOUR STAFFING NEEDS

With staff shortages in the industry becoming increasingly acute, the location of the care home in the context of staffing has never been more important.

Think about whether most staff reside in the same town or village, or if they have to travel from further afield. Whilst this is commonplace in many rural areas, if there are public transport options,

then this will assist. Who are the main employers in the area, and in the coastal towns in particular, are there seasonal variances, with competition from tourism and the hospitality industry?

DO YOUR RESEARCH AND APPOINT CARE SPECIALIST ADVISERS

With the care market as specialist as it is, it is important to appoint advisers who work exclusively in the sector and truly understand its nuances and details.

You’ll need legal, accounting, and brokerage advice, and it may also be necessary to obtain funding advice, too. Do your research and gather testimonials from others who have worked with them to ensure you’re getting a great service.

UNDERSTAND YOUR LOCAL MARKET

Bed space availability is fluctuating rapidly across Devon, with the provision of new-builds in some areas substantially increasing bed supply and, in other areas, closures are restricting the supply of bed spaces.

Understand the local market and whether there are immediate and medium-term needs for bed spaces in the area, as demand drivers are key to the success of a care home. Your specialist broker who lives in the area will know the local market better than anyone, so they will be able to help with this.

KNOW YOUR FUNDING OPTIONS

If you’re looking for financial help to expand your care portfolio, keep your options open and ensure you’re getting the best rate in the market by appointing an experienced funding broker to act on your behalf. The funding landscape has changed beyond all recognition, with many more lenders vying for your business, and it’s important to enter the market with the best team on your side.

If you are a care home operator looking to expand your portfolio and would like to discuss your options, contact Simon Harvey: simon.harvey@christie.com or 07764 241 310