Patrick Wallace, Co-Founder and Director, Curam, a platform that connects individuals with caregivers, discusses the issues being faced by care homes that lead to leaked value, and their solutions.
Cost inefficiencies within the care sector have been laid bare, with care homes calling for increased funding despite a £64 billion social care funding package for councils.
Recurring value leaks can force care homes to increase fees to cover costs, or in worst-case scenarios enter administration – an issue that increased by 400% in 2022 compared to the previous year. Rising care home costs, which grew over 11% in 2023 may limit care homes from working with local authorities if deemed too expensive, resulting in reduced revenue. This has a knock-on effect on local areas as it reduces local authorities’ ability to provide quality residential care to a rapidly ageing population.
Staffing is a key factor behind care home price rises. Driven by pressures like the recent National Living Wage hike, the care vacancy rate is the second highest since records began. Sickness and absence can happen regularly, and the shortage of carers means care homes often rely on expensive agency cover.
However, care homes can reduce staffing costs and meet demands for fair carer wages by reforming their staff acquisition practices.
Using technology to shrink staffing costs
A pattern of low carer pay has fuelled the care sector’s staffing crisis. Carer wages have failed to keep up with jobs in within the NHS and have experienced a 0.2% real terms pay cut due to inflation. However, a care home’s hourly rate once adjusted for inflation has also increased.
Solving the staffing crisis relies on care homes reducing costs and making care a sustainable long-term career path. Technology offers a valuable resource for achieving this through creating digital marketplaces of highly trained vetted carers. Technology can reduce overheads by taking on administrative tasks and streamlining the process of connecting carers and clients, all while taking lower fees than traditional recruitment agencies whilst care professionals earn on average 50% more.
Increasing speed
The process of hiring carers can be challenging, but technology can offer a lifeline to care homes hit with short-notice absences. When care managers lose staff to sickness, for example, they can struggle to reach minimum carer-patient ratios, particularly if last-minute care is needed outside typical agency working hours.
Technology can speed up the process of connecting high-quality carers with care homes in need, and ensure these ratios are met quickly. This, in turn, helps avoid costly agency cover and helps keep care homes financially viable, even in a crisis.
Creating a long-term career path
A lack of career development opportunities and training has undermined the retention of carers in the profession. Combined with issues such as pay and stretched working hours, it can leave carers feeling undervalued and contributing to the sector’s workforce deficit.
While tight budgets can restrict care home managers’ abilities to invest in third-party training, they can instead use digital care platforms to offer training and development resources like the Care Certificate and Health and Social Care Awards Levels 3, 4 and 5. Hiring carers who make use of this service ensures care homes are recruiting staff who are invested in a long-term career and who are constantly refining their skills to provide high-quality care.
Recruitment reforms are essential
The turmoil continually experienced by the care sector, made worse by the cost-of-living crisis, lays bare the necessity of a stronger care system for homes, carers and clients.
Refreshing outmoded acquisition routes by integrating technology is the best way for care home managers to access affordable, vetted care, but also to ensure carers themselves are paid fairly and valued.
The bottom line is that to survive, care homes must put carers first.
