Private care home investors a risk to public sector, regulator says

Private companies buying up care homes for older people in England could undermine the government's ambition to create a universal care service, the regulator says.

The Care Quality Commission's annual report, external highlights how an increasing share of the care home market is owned by large firms - the five biggest have increased their share of the market by 26% in the last two years, driven by interest from US property investors. Between them they own around one in seven homes.

While there could be benefits, there are concerns the trend can lead to higher prices and a reduction in the quality of care - something the CQC says needs to be monitored.

Meanwhile, home care, providing support to help people wash and dress in their own home, has become more fragmented, with a greater number of smaller providers.

The CQC says this could create inefficiencies - nearly a third of these services are providing care to four or fewer people.

In contrast, there are few smaller care homes judged important for providing specialist and personalised care.

Small care homes have always represented a tiny proportion of the care home market, but over the last 14 years the numbers have fallen significantly, particularly those that combine care with nursing support, which are down by a quarter.

The CQC says the funding system remains fragile – people using care services either self-fund or, for the poorest, the state helps to pay for their costs.

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