Summary of key points:

Economic update - Dr Walter Boettcher, Research and Forecasting

  • Ongoing economic, regulatory and legislative uncertainty is slowing the development and implementation of a durable long-term adult social care funding solution by public and private sector organisations.
  • The economy is still not growing. The IMF have praised the Chancellor on one hand for his willingness to promote further unconventional monetary policies, but are critical of the pace of fiscal austerity which they see as preventing a more sustainable economic recovery.
  • In setting the stage for the banking panel discussion, Dr Boettcher evidenced that commercial lending is still struggling to regain traction, and suggested that many new alternative funding sources continue to enter the market.

 

Research launch - Lisa Dean, Research and Forecasting

  • The care home sector as a whole remains under pressure due to ongoing cutbacks in local authority care budgets.  Fees also remain under pressure and occupancy has been generally falling.
  • Personal care is faring better than the nursing sector which is seeing falling fee income levels, increases in wage and non-wage costs and falling EBITDAR. Specialist care sector KPIs are reflecting the impact of increasing cost pressures in particular.
  • In general, long-term care sector income is not keeping pace with inflation and trading continues to be challenging.

 

Banking panel discussion - moderated by Jeremy Tasker, Healthcare

We were delighted to be joined by a panel of bankers who engaged in a discussion on lending priorities in 2013/2014.

Key highlights:

  • The bankers were asked what their ‘sweet spot’ for lending was. The consensus was that they simply wanted competent operators with well-located and modern purpose built facilities, who also had a 'bit of skin' in the game.
  • The bankers agreed that completing loans was often a long-winded process but that the will to lend was definitely part of their business plans. One banker made a passionate plea for operators that were in the business for the long term, recognising that healthcare is a key public service.
  • There was some discussion about the limits to private healthcare provision and a general agreement that public provisioning of long-term elderly care services would grow in importance and that the funding was already available but not necessarily in the right pots.

 

What our clients say?

“Thank you for hosting a very professional and smooth presentation on the market.”
London & Regional Properties

“Really good conference this morning – 90% of the value of a Laing & Buisson conference in a quarter of the time.”
Mansfield Advisors

“The presentation was excellent.  Really good networking session as well. I will definitely be up for coming next time!”
Quercus Healthcare

“Very much enjoyed the event. Conservative optimism seemed to be the theme. Was interesting to watch and listen to my competitors – well worth the flight down from the North. Congratulations on an excellent morning.”
Clydesdale Bank

“Thank you very much for the healthcare research conference yesterday morning. It was very helpful, a great panel.” 
Newcore Capital Management

 

Healthcare Panel