Recently, Howes Percival’s healthcare sector team partnered with Care Talk to curate an exclusive dinner at the historic Delapré Abbey in Northamptonshire. The event brought together a dynamic mix of operators, funders, and advisers in the care sector, offering a platform to share and debate issues facing the sector today.
At the heart of our discussions was the resounding consensus that waiting for external solutions is not a viable strategy. Professor Martin Green OBE, Chief Executive of Care England, illuminated the room with insights into the challenges facing care providers, highlighting the sector's ongoing struggle for recognition and support, particularly in comparison to the NHS.
One prevailing sentiment which echoed throughout the evening was the imperative for entrepreneurialism within the sector. We heard stories of smaller operators diversifying their services, finding new avenues for growth such as specialist care and dementia units. These tales underscored the importance of proactive adaptation in an ever-evolving landscape.
Yet, amid the drive for innovation, frustrations regarding regulatory processes remain commonplace. The absence of onsite CQC inspections post-COVID and the introduction of the CQC’s single assessment framework continues to be a cause for concern for the range of operators present. Everyone recognises there is a requirement for an inspection regime that fosters improvement and benefits those who strive for and maintain high standards, as seen in models in other sectors. While it is still early days for the new framework, there is concern about the ability of lower performing operators to mark their own homework, worries over the weighting given to provider feedback from third parties and a general lack of oversight given the scarcity of in person inspections by the CQC.
Undoubtedly, the persistent staffing crisis continues to be a massive challenge for the sector. The impact of Brexit on the availability of staff continues to be problematic, as do the increasing wage demands caused by the cost-of-living crisis.We were not surprised to hear that many suitable candidates are opting to take job offers from other sectors (such as retail or distribution) where the employers can perhaps afford to pay slightly more. However, to confront these challenges, industry leaders have shed light on the potential for investing in overseas talent, coupled with ensuring robust induction and training programs (and improving staff engagement) to mitigate high staff turnover rates and ensure continuity of quality care.
Simon deMaid, Employment Partner at Howes Percival commented: “During the pandemic it became increasingly difficult to recruit sufficient staff into the sector and reliance on agency staff increased dramatically during this period. However, we are now starting to see the availability of more people in the recruitment market for the first time in 3 or 4 years. Many providers have also successfully started recruiting from overseas which has helped address the staffing crisis, particularly given the shortage of nurses in the UK. Admittedly, the NHS can still be more attractive or competitive when it comes to the recruitment of nurses, so this still presents a challenge for the care sector. And whilst recruiting from overseas can provide huge benefits, it is not the silver bullet many people think it is due to the complexity of the immigration rules and the costs associated with overseas recruitment.”
Neil Russell of PJ Care added, “There are real benefits of investing in sponsorship of overseas talent. It's a great way to bring in good quality nurses and help reduce staff turnover – it does involve investing time in training and providing support during their first year in the UK, but it’s time well spent!.”
From the perspective of funders, while acknowledging the sector's challenges, there remains a genuine appetite to invest, particularly amongst those funders and investors with a deep knowledge and understanding of the particular dynamics of the sector. Despite the complexities, there are still ample opportunities for those willing to navigate the terrain with agility and foresight.
The Howes Percival hosts for the evening, Oliver Pritchard (Corporate), Simon deMaid (Employment) and Rob Starr (Regulatory) were struck by the incredible commitment to people and outcomes which was expressed by everyone who attended the dinner. In the face of complexity, sustainability, and long-term deliverables we need to change the dial by embracing innovation, harnessing the power of collaboration, and remaining steadfast in our dedication to effecting positive change.As legal advisers who understand the challenges and complexities of the sector, we stand ready to help operators, funders and advisers alike to navigate the road ahead.
If you would like to discuss your plans for the future on a highly confidential and no obligation basis, please contact Corporate Partner, [javascript protected email address] at [javascript protected email address]; Employment Partner, Simon deMaid at [javascript protected email address]; or, Regulatory Partner, Rob Starr at [javascript protected email address].
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