Buying a Care Home or Nursing Home

Firstly, what is the difference between a care home and a nursing home? According to the Registered Nursing Home Association (RNHA), the distinction is as follows:

A nursing home, as distinct from a residential care home, has to provide the kind of care which requires the specific skills of a qualified nurse or the supervision of a qualified nurse.

Buying a care home or nursing home represents a potentially lucrative investment and satisfying choice of business to own. As people continue to live longer, the demand for care and nursing homes increases. A typical care business will generate 25% - 35% net profit and enjoy a minimum occupancy rate of 85%. As nursing homes require a qualified nurse, they tend to be slightly less profitable than care homes.

That is not to say it is an easy choice of businss without obstacles. As the owner, you will have to be up-to-date on, and comply with, changes in care legislation. A good place to start researching is the the Commission for Social Care Inspection (CSCI) website which can be found at www.csci.org.uk. The CSCI, which was created by the Health and Social Care (Community Health and Standards) Act 2003, replaced the National Care Standards Commission and is responsible for inspecting, regulating and reviewing all social care services against the Department of Health's National Minimum Standards. It is vitally important to understand these minimum standards as these may have a considerable bearing on the suitability and value of a care home you are considering buying.

To give you an idea, here is a non-exhaustive list of property related requirements for care homes for older people:

19.1 The location and layout of the home is suitable for its stated purpose; it is accessible, safe and well maintained; meets service users’ individual and collective needs in a comfortable and homely way and has been designed with reference to relevant guidance.

20.1 In all newly built homes and first time registrations the home provides sitting, recreational and dining space (referred to collectively as communal space) apart from service users’ private accommodation and excluding corridors and entrance hall amounting to at least 4.1 sq m for each service user.

21.6 Ensuite facilities (at minimum a toilet and handbasin) are provided to all service users in all new build, extensions and all first time registrations from 1 April 2002.

23.2 In all new build, extensions and first time registrations, all places are provided in single rooms with a minimum of 12 sq m usable floorspace (excluding ensuite facilities).

23.3 Single rooms in current use have at least 10 sq m usable floorspace (excluding ensuite facilities) from 1 April 2007.

23.9 Rooms which are currently shared have at least 16 sq m of usable floor space (excluding ensuite facilities).

23.11 From 1 April 2007, existing homes that do not already provide 80% of places in single rooms must do so.

Useful tips before you buy

• Decide if you have the right temperament for, and commitment to, the industry.
• Research all properties carefully to see whether they meet current care regulations.
• Find out the percentage of single rooms and those with ensuite bathrooms.
• Assess the access, parking and facilities.
• Determine if the home and in particular the public areas are suitable for disabled people and wheelchair access.
• Build up a good relationship with your CSCI inspector.

In short, understand your legal requirements and research, research, research!