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Britain's care homes under threat

Rising costs and a funding squeeze are threatening as many as a quarter of the UK's care homes with closure
Britain's care homes under threat

Care homes have found themselves back in the headlines lately, reflecting concerns that serious funding issues may force the closure of up to a quarter of the UK's elderly, social and mental care homes. There are roughly 20,000 care homes in the UK, which are operated by 5,871 individual owners - the majority of which are private equity companies or real-estate investment vehicles. Some of these are listed in the US, and two - Cambian (CMBN) and CareTech (CTH) - have London listings.

As financial issues threaten the closure of around 5,000 care homes, questions have been raised as to whether private equity or public limited companies - whose priority is making money for shareholders - should be running organisations whose duty, it is argued, should be to provide the best care for those in residence.

 

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