Occupancy remains steady as providers batten the hatches
March 26, 2020
Specialist care home property consultants Carterwood have published the results of a survey of care home operators designed to gauge the impact of the coronavirus and measures to combat it.
The survey suggests there has been a very limited effect on occupancy, with 88% of those providers who responded seeing no reduction at all so far. Carterwood says anecdotal evidence indicates that some operators are actually seeing a rise in occupancy.
Supplier costs have clearly started to rise with demand, with 55% of operators seeing supplier costs increase a little, and 15% experiencing dramatic increases. Although more than half of operators still expect a reduction in occupancy over the next three months, the proportion forecasting no reduction at all is significantly larger now (43%) than it was on 11 March (22%).
Carterwood also asked providers to share any specific viewpoints not covered in the survey and staffing came up time and time again as a major concern for respondents.
Across the sector as a whole, despite the adverse conditions, market sentiment remains reasonably positive, with 85% of respondents viewing the care market with “slight or greater confidence”.
As the COVID-19 outbreak escalates and the economic situation becomes more precarious, the sector is now viewing investment with caution: 44% of respondents stated that they have changed their 2020 investment plans.