A financial analyst has warned that one in ten care homes could be forced to close as a result of the coronavirus crisis.
Nick Hood, adviser at Opus Business Service, told the Daily Mail that 1,200 care homes were facing closure as a result of higher PPE and agency staff costs caused by the outbreak.
The care home debt restructuring expert said: “The vast majority of homes don’t make money at the best of times.
“Nobody has been through a situation like this where an entire business model collapses. Nobody knows how much further the COVID-19 deaths will go in care homes and how long it will be before people feel confident putting their elderly relatives into care homes.”
The report follows a coronavirus survey report by ADASS last week which found that a quarter of directors had concerns about the financial stability of most of their residential and nursing providers since the COVID-19 outbreak with 7% concerned about all of their providers.
Nicola Richards, who Palms Row Health Care in Sheffield, told the Mail that her business was “hanging by a thread” after 19 residents died from the virus.
Nicola said: “I can’t put it into words – it’s the most stressful time I’ve ever experienced. If there’s no change, we will close.
“This is real, this will happen. Homes will close on mass – it’s a ticking timebomb.”
A spokesperson for the Department of Health and Social Care said the government was “doing everything we can to ensure the adult social care sector in England is getting the support they need to tackle the unprecedented pandemic on the frontline and continue to deliver quality care to our most vulnerable”.