In a post-Covid world that has ravaged the healthcare industry, there is still a silver lining to be found in the realm of building bridges between social and medical commissioners, incentivizing innovation-driven investments, and shifting from condition-centred to personalized care models. Here’s how and why certain calibres of care properties care are socially and financially viable for sustainable private funding.
Focus on person-centred growth
An emphasis on the ESG framework, and sustainability-themed private equity funding, is a widespread result of the pandemic, with investors looking to reallocate their assets into companies with a positively impactful culture. At first glance, the healthcare sector is struggling from underlying issues such as fissured links between medical and social authorities leading to a fragmented patient experience, severe understaffing and underfunding, as well as outdated practices in most care home providers in the UK that compromise on holistic quality, safety, and well-being. However, with the number of prevalent chronic conditions in an elderly population predicted to reach a 1.2 million growth by 2040 and an expected shortage of 75,000 care beds by 2030, value-added private investments are the only way forward. According to Knight Frank, innovative tech-oriented funding is essential to revolutionizing care homes for people with dementia, for instance, by introducing multi-faceted proactive care mechanisms tailored to individual personalities, backgrounds, aspirations, and preferences.
Technology-driven ethical care
Despite the recessive economic environment, care homes are a low-risk and high-return investment with high sustainable and ethical potential for ESG enterprisers shifting away from volatile industries like retail, hospitality, and transport. Knight Frank’s occupancy tracking survey for care home companies in the UK discovered that overall occupation is currently over 80% with steadily increasing admissions. Whether its smart home technologies that facilitate remote monitoring or the digital integration of health and social care systems that enable efficient data-powered decision-making, investors are opting for homes proffering sophisticated technology-enabled care (TEC) amenities. Artificial Intelligence (AI) is also proving quintessential to facilitating preventative and reablement measures in a cost-effective manner that is more accessible to underserved populations.
Increased shareholder customization
To ensure that fit-for-purpose establishments with virus-proof care infrastructure are the ones that remain running, reinvestment and restructuring are paramount. The traditional financing and supply routes are no longer sensible due to unprecedented demand, with the yearly increase for 85+ year-olds projected as 27.5% over the next ten years. Therefore, while the MSCI found that care homes yield double the ROI of residential properties, they must also proffer competitive incentives for investors looking for a hands-free, zero-cost, and value-added niche investment. These could take the form of bespoke packages complete with an assured payment schedule, guaranteed buy-back, and holistic amenities providing annual capital appreciation.
Sound corporate culture and transparency
Good governance under the ESG investment model also includes facilitating system-wide collaborations and multidisciplinary support for frontline workers, especially since a 2019 survey indicated that 40% of HPCs felt work-related stress at being overburdened with over 100,000 vacancies across different NHS posts. A comprehensive workforce strategy is necessary for elderly mental health care homes; to make sure that care workers are financially and emotionally supported and able to give their full effort in engaging with residents on a meaningful and personal level. Additionally, the educated spenders of the £ 300 billion “grey pound” demand autonomy in their advanced care planning process; therefore, before any upgrades or policy changes, it’s essential to involve residents and their families in the cost-benefit analysis.
Need for co-production
According to the King’s Fund, while care homes need to establish evidence-based practices and a home-like environment, their true worth on a community level is through “reshaping relationships”; creating synergies that empower the vulnerable without discrimination. This can only be achieved through a collaborative safety net, where sustainable solutions are created, authorized, and delivered by social and healthcare synergies backed by community volunteers and sponsors.