The care home market has taken a short-term hit as a result of the COVID-19 pandemic, new research from AMA Research has revealed.
The care home industry was hugely affected by the COVID-19 pandemic during 2020, with mortality rates disproportionately high amongst the care home population and the UK’s older age groups (those aged 70+). This led to a sharp drop in the care home population and hence occupancy levels during 2020.
The Residential Care Homes Market Report from AMA Research found that total care home sector revenue in 2020/2021 was down by almost 3% from the previous year because of the pandemic. The private/independent sector accounted for a leading 91% of overall market value in 2020/2021, with the public sector comprising the remainder. Despite the drop in value within the last year, the market is expected to return to growth from 2021 onwards- thanks in part to the COVID-19 vaccination scheme now running in the UK.
The most significant change in the provision of residential care in the last 25 years has been the much greater involvement of the private sector, with substantial growth in the number of private nursing home places.
The private care home market in the UK is highly fragmented, consisting of several key players and many small providers. A key feature of the care home market is the prevalence of small and medium sized providers, of which there are around 9,500 at present.
The Government remains under pressure to introduce a more sustainable model for funding social care in the UK. There have been ongoing delays to the publication of its Social Care Green Paper, a situation not helped by the distractions caused in dealing with COVID-19.
