For UK social care providers
You are filling beds at council rates and leaving substantial revenue on the table
Local authority-funded residents typically pay considerably less than self-funders for the same bed. A home running mostly on LA referrals can generate substantially less each year than one with a healthier self-funder mix, from identical occupancy.
Two minutes. Solva follows up with specific self-funder acquisition options.
- High occupancy but persistently low profit margins
- Limited budget for facility upgrades or staff development
- A reactive approach to admissions, relying on inbound LA referrals
- Inability to differentiate services or command premium pricing
- Staffing challenges due to inability to offer competitive wages
- Reduced investment in facility maintenance and modernisation
- Lower EBITDA and reduced valuation for the business
- Difficulty securing investment for expansion or improvements
- Perception as a 'budget' or 'LA-only' provider
- Difficulty attracting high-calibre staff
Approximately 37% of UK care home residents are self-funders, paying on average 41% more than local authority-funded residents (ONS, 2021-2022)
Frequently asked questions
Why does this problem persist?
Local authority-funded residents pay on average 40% less than self-funders for the same bed. Care homes that rely entirely on LA referrals are structurally unprofitable. Shifting even 10–15% of occupancy to self-funders requires a deliberate marketing strategy targeting families directly.
What is the cost of leaving it unaddressed?
A 40-bed care home at 90% occupancy with 80% local authority funding generates approximately £1.1m revenue. The same home with 50% self-funder occupancy generates £1.5m - a £400,000 difference from the same number of beds (ONS, 2021)
This is exactly what I do with UK private practices. Answer the few questions above and I'll come back personally with where to start. Paul.