Most South West care-home owners acknowledge that the region is good for their business, despite strong competition – but agree that the volume of Government “red tape” has become excessive.

Almost three-quarters (72%), say that the Government should scrap an existing regulation every time it introduces a new “red tape” rule.

Most agree that the high number of care-homes in the region generates intense competition for staff – but agree that the South West's growing number of elderly inhabitants mean that there are not too many care-homes.

These are among the top-line findings of a detailed survey among South West care-home owners and managers, conducted by the care-home team at Bishop Fleming, the accountancy firm with the region's widest spread of offices.

More than two-thirds (66.7%) of South West care-home respondents say that the amount of regulation “red-tape” has become excessive and takes up too much administrative and financial resource.

Less than a quarter (21%) viewed the Commission for Social Care Inspection's new “star-rating” for care-homes as being likely to achieve the aim of raising standards. Almost half (44.5%) said that the ratings indicate a loss of confidence in the existing system and will do little to raise standards.

Even more South West care-home owners and managers (52%) condemned the new self-assessment for quality assurance, saying that this new move is “another unwelcome piece of bureaucracy, which will add to the burden of ‘red-tape'”. Almost as many, however, (48%) welcomed the self-assessment formula as ensuring that good systems will be followed.

Tim Godfrey, the partner heading Bishop Fleming's care-home team, said: “This sector has experienced a raft of recent additional regulations, and is also having to adjust to the creation of a new regulatory body, with changed inspection processes.

“While alarming headlines focus on disturbing poor performance, the vast majority of this region's care homes deliver superb levels of service”, said Mr Godfrey.

Meanwhile, more than two-thirds (65.5%) confirmed that care-homes cannot operate effectively if staff are limited to the Working Time Directive's 48-hours weekly limit.

Next year (2009) South West care-home owners will face another new Government initiative – the National Minimum Standards for social care.

Almost half the region's care-home owners (47%) predict that this will have the biggest impact on their staffing levels, while more than a third (38%) say that it will most affect their training programmes. 15% expect the biggest impact to be on physical changes to their buildings.

According to Bishop Fleming's Tim Godfrey: “Staff recruitment and training are the crucial issues for care-home owners in this region”.

This is underlined by 40% of South West care-home owners saying that, while the region is a good place for their business, there is intense local competition from a large number of care-homes for both staff and residents.

“Nonetheless, more than half (52%) said that, with such a high population of retired people and a good climate, there is a strong demand for care-home places in the South West. Only 8% said that they would choose a different region if they were starting their care-home business again”, said Tim Godfrey.

Asked if there are too many care-homes in the South West, just 20% said “yes”; 50% said “maybe – but market conditions will restore the balance between supply and demand”; and 30% said “no – the number of homes is about right for the region's market needs”.

“This region's population statistics demonstrate the need for one of the country's highest concentrations of care-homes, with so many people choosing to retire to the South West. This underpins the demand side of the care-home sector.

“But that high level of demand puts a tremendous pressure on the region's care-homes to recruit, train, and retain staff”, said Bishop Fleming's Tim Godfrey.

“This is the biggest single hurdle facing most care-homes, which need to balance wage-bills with resident-fees, limited by Government and local authority stipulations. That balance demands a well-crafted business plan”, he added.

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