Elderly Care Home Supply Hits Decade Low: Connell Consulting Responds
Connell Consulting responds to new data from the Office for Health Improvement & Disparities showing that elderly care home provision in England has fallen to its lowest level in a decade. The decline in care home bed availability is creating a severe undersupply, contributing to hospital bed-blocking and increased pressure on the healthcare system.
Our analysis explores the reasons behind care home closures, identifying which types of homes are most at risk. Residential homes and those not registered for dementia care are the most vulnerable, while nursing homes including dementia nursing homes, have remained more resilient, with 6,844 dementia care beds opened in 2022 compared to only 374 non-dementia beds. Nursing homes without dementia care saw a net loss of 744 beds, highlighting the growing demand for specialist dementia provision.
Regional variations in supply are also significant. Areas with the most severe undersupply could benefit from repurposing existing care home properties, offering operators a less capital-intensive alternative to new builds, particularly given rising construction costs. For mid-market providers looking to expand, refurbishment and redevelopment present a viable solution to meet increasing demand.
Data from the Office for Health Improvement & Disparities shows that the number of care home beds per 100 people aged over 75 declined from 11.3 in 2012 to 9.4 in 2022, indicating that elderly population growth has far outpaced care home expansion. CSI Market Intelligence reports that England saw roughly two closures for every new care home opening in 2022, emphasizing the urgency for strategic planning in the sector.
Connell Consulting continues to monitor trends in elderly care provision, offering insight and guidance to operators, investors, and policymakers to address the growing supply-demand gap and ensure sustainable, high-quality care for the ageing population. To learn more about the services Connell Consulting provide, contact us HERE…