Top tips for buying a care home
When buying a care home, there are numerous factors to consider, things you can do to ensure the process runs smoothly, and ways to make sure you are getting the most out of your transaction.
Here are our top 5 things to consider when buying a care home.
- Is the care home registered with the Care Quality Commission (CQC)?
Whether you are purchasing the care home as an individual, partnership or organisation, you must be registered with the CQC. If any of the 14 regulated activities are taking place, such as personal care, nursing care, and accommodation – registration is obligatory.
The registration process takes a minimum of ten weeks, assuming there are no queries with the application. It is best to make the application sooner than later if you are not already registered and require a quick acquisition.
- Make sure assets are maintained
When making such a purchase, assets such as the kitchen equipment, lifts and on-site washing/cleaning equipment should be maintained. Proof must also be provided of the maintenance work that has been carried out. If maintenance hasn’t been carried out, the buyer will have to deal with the maintenance bill themselves.
- Will it be a wise investment?
Research of profit is important when making such a purchase. Therefore, we would recommend researching the ratio of private to publicly funded residents at the care home. Care homes with a higher number of private paying residents usually have higher profit margins.
- Acquainting yourself with the current staff
Before the purchase of the care home, we would recommend acquainting yourself with the key staff. This is fundamental for a successful transition when running the business. This includes making sure each employee is capable of fulfilling their role and putting measures in place to make sure they have all the necessary training and qualifications.
Being fully accustomed to all staff members is vital. Whether it is their contract or salary, it is important to understand all aspects of the care home.
- Does the building have the relevant permission for the intended use?
Make sure the property has no restrictive covenants and has all the relevant planning permissions to use the building as a care home. For example, there may be limits on the property not allowing the property to be used for trade purposes.