In another excellent article published by Carterwood Analytics, they assessed the impact of COVID-19 on the occupancy levels within care homes, up until 18 June 2020.
Clearly occupancy rates have suffered as a result of the higher than normal mortality rates and are expected to be at their lowest during June 2020; in the region of 79% which compares to 87.3% in January 2020.
The expectation is that occupancy rates will steadily increase back to pre Covid-19 levels but that it is likely to take until July 2022 or October 2022, dependent upon assumptions used. This will undoubtedly vary from region to region and will depend upon demographics and supply of beds.
What is not clear to me is the expectations of commissioners and service users in terms of the ability of homes to isolate service users, particularly as the virus will be with us for a while and will continue to pose a serious risk until a vaccination is found.
Will this mean that some homes are not fit for purpose and will need to either future proof themselves or consider closing? If it is the latter, what will the impact be on the supply of available beds?
Banks continue to be supportive to the nursing and care homes sector, but with the vast amounts lent by banks through the Government schemes resulting in delays to funding applications this will, in my view, become more challenging moving forward.
Should you need any assistance with your business requirements or funding assistance please get in touch.
Colin Peacock
Specialist Accountant for Nursing and Care Homes
