Care Homes 2011

Executive Summary

This Key Note Market Report examines the UK market for the long-term care of the elderly, including residential care homes and nursing homes operated by local councils, private businesses and not-for-profit organisations (NPOs).
Despite an increasingly ageing population and a growing demand for care services, the UK residential care and nursing homes market has been significantly affected by the recent economic downturn and, specifically, the Government’s public spending cuts. The Comprehensive Spending Review of October 2010 set out a yearly reduction of 7% on local authority funding until 2014. Many local authorities have subsequently increased the threshold for eligibility for free adult social care.
Between 2006 and 2010, the long-term care market for elderly and physically disabled people grew by 14.9% to nearly £14bn. It continues to be dominated by the private sector, which accounted for 84.6% of the total long-term care market in 2010. Over the same period, the number of long-term care places provided by the public sector declined from 58,700 to 46,200.
The care homes sector is currently dominated by a small number of large companies, including Barchester Healthcare, BUPA and Sunrise Senior Living. Following the collapse of Britain’s largest care home operator, Southern Cross, Four Seasons subsequently became the largest care home company after acquiring 140 homes from Southern Cross in October 2011.
An exclusive survey on care and nursing homes commissioned by Key Note revealed that as many as 77.3% of respondents would only consider care or nursing homes as a last resort. This compares with 42.3% of those who said that they would be happy to live in a nursing or care home. Encouragingly, more than half of adults surveyed said that they believe nursing or care homes provide a good standard of care and that the majority of care homes are well run.
Despite short-term funding constraints, Key Note expects care homes to be a long-term growth market, as life expectancies are likely to continue to increase. This will also create further opportunities for businesses that offer specialist care for aged-related illnesses, and will increase demand for high-quality units. With this in mind, Key Note has forecast that the long-term care market will grow by 13.2% between 2011 and 2015 to reach £16.2bn.

Medical Facility Industry in the United Kingdom

Table of Contents

Foreword

Executive Summary

Market Definition
REPORT COVERAGE
MARKET SECTORS
Residential Care
Nursing Care
Specialist Care
MARKET TRENDS
An Ageing Population
Changing Demographics and Informal Care
Local Authority Funding Cuts
Changes in Government Policy
ECONOMIC TRENDS
Population
Gross Domestic Product
Inflation
Unemployment
House Disposable Income
MARKET POSITION
The UK
Overseas

Market Size
[(c)THE TOTAL MARKET
CAPACITY AND DEMAND
Capacity
Occupancy

Industry Background
RECENT HISTORY
NUMBER OF COMPANIES
EMPLOYMENT
REGIONAL VARIATIONS IN THE MARKETPLACE
DISTRIBUTION
HOW ROBUST IS THE MARKET?
LEGISLATION
KEY TRADE ASSOCIATIONS
English Community Care Association
National Care Association
The National Institute for Health and Clinical Excellence
Registered Nursing Home Association
Royal College of Nursing

Competitor Analysis
THE MARKETPLACE
MARKET LEADERS
Barchester Healthcare Ltd
BUPA Care Homes (CFG) PLC
Care UK Ltd
Craegmoor Healthcare Company Ltd
Four Seasons Health Care Ltd
MHA Care Group
Quantum Care (UK) Ltd
Southern Cross Healthcare Group
Sunrise Senior Living Ltd
The Orders of St John Care Trust
OUTSIDE SUPPLIERS
MARKETING ACTIVITY
Main Media Advertising Expenditure
Events and Exhibitions

Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS

Buying Behaviour
CONSUMER ATTITUDES
"I Currently Have/Have Had a Relative Living in a Care Home"
"I Would Provide Home Care for An Elderly Relative If The Situation Allows"
"I Would Prefer My Elderly Relatives to Move Into a Nursing or Care Home When They Can No Longer Look After Themselves"
"I Would Be Happy to Live in a Nursing or Care Home in Old Age"
"I Would Only Consider Moving into a Nursing or Care Home as a Last Resort"
"I Would Prefer to be Looked After by Family in Old Age"
"I Believe Nursing or Care Homes Provide a Good Standard of Care"
"I Believe Most Care or Nursing Homes Are Well Run"
"I Have a Financial Plan in Place to Pay for My Care in Old Age"
"I Am Concerned About the Affordability of Long-Term Care in Old Age"

Current Issues
SPENDING REVIEW
THE DILNOT COMMISSION REPORT
CLOSURE OF SOUTHERN CROSS HEALTHCARE
INCIDENCE OF DEMENTIA ON THE RISE
ABUSE IN CARE HOMES

The Global Market
INTRODUCTION
MAJOR MARKETS
The US
Europe

Forecasts
INTRODUCTION
General Economic Forecasts
FORECASTS TO
MARKET GROWTH
FUTURE TRENDS
Demographic Changes
Care Requirements Likely to Change in the Future

Company Profiles
INTRODUCTION
DEFINITIONS
Turnover (Sales)
Pre-Tax Profit
Profit Margin
Average Remuneration
Sales per Employee
FURTHER INFORMATION

BARCHESTER HEALTHCARE LTD
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios

BUPA CARE HOMES (CFG) PLC
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios

CARE UK LTD
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios

CRAEGMOOR HEALTHCARE COMPANY LTD
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Code
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios

MHA CARE GROUP
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Code
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios

THE ORDERS OF ST. JOHN CARE TRUST
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Code
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios

QUANTUM CARE (UK) LTD
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Code
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios

SUNRISE SENIOR LIVING LTD
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios

Further Sources
Associations
Publications
General Sources
Government Publications
Other Sources
Key Note Sources
Key Note Ltd

Understanding TGI Data
Number, Profile, Penetration
Social Grade
Standard Region

Key Note Research

The Key Note Range of Reports

Medical Facility in United Kingdom

United Kingdom Doctors, Per `000 Population

• $ 250
• Industry data
• January 2013

Yearly, From January 01, 2004 To January 01, 2004
By Business Monitor International
Source: Department Of Health, European Health for All Database (HFA), BMI

• Industries : Medical Facility
• Countries : United Kingdom