Private Care Home Profit Made Simple

Lenin offers this simple, straighforward explanation of how private equity trusts investors receive  a guaranteed return (profit). Why else would they invest?

Consider  a 40 bed care home, in  a working class area ie with no private paying residents.

The home takes in £1 million  a year from the government.

From that, if owned by  a private equity group such as Four Seasons, £200 thousand goes to the management fee.

£100 thousand goes to the investors.

£100 thousand goes to the bank.

Therefore, only £600 thousand remains.

Staff wages account for 60% of this.

Therefore, £240 thousand remains. Half is for fixed costs such as food or electricity.

The rest 12% is sheer profit.

Consider however, this is if the home is full. The average occupancy for care homes is 82%.

We are not told the true cost of care.

Businesses are like pigs in a trough.

The government dish out the swill.

Care costs largely cover debt or profit   Lenin Nightingale 2015

These links are relevant;

https://lenin2u.wordpress.com/2013/12/21/who-owns-care-homes/

https://nursebloginternational.wordpress.com/2015/06/29/two-tier-care-homes/

https://nursebloginternational.wordpress.com/2015/07/26/working-class-nursing-homes-foul-smelling-hellholes-of-capitalism/

https://nursebloginternational.wordpress.com/2015/04/24/american-lessons-the-future-of-care-in-the-uk/

https://nursebloginternational.wordpress.com/2015/03/04/adult-social-care-budget-uk-for-whose-profit/

https://nursebloginternational.wordpress.com/2015/01/09/sour-carols-private-equity-firms-and-health-care/

https://nursebloginternational.wordpress.com/2015/07/27/home-care-visits-bbc-and-propaganda/

https://nursebloginternational.wordpress.com/2015/05/29/philippino-nurses-fake-certificates-and-job-orders/

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14 thoughts on “Private Care Home Profit Made Simple

  1. I am sorry but the numbers Lenin presents as fact are complete fiction. With living wage rates payroll is at least 60% of turnover, direct and indirect costs another 15% minimum, professional fees (regulation and legal and audit) another 5%. That leaves 20% before finance costs and tax. So net profit of about 8%.

  2. The type of care firm providers that Lenin is talking about are quite prepared to run down their businesses to makes sure they get the sort of figures Lenin gives and then move on. Interesting just who the shareholders are in most of these companies. Nearly always the principle directors.

  3. Thanks Ian. Shareholders important. Many forget that some MPs are investors. Surely this may well bias some political decisions in favor of the care home ?
    Of course WHO owns care homes is an extremely relevant factor. Sadly homes owned by one private investor are not mentioned by the press. Time we heard from them. Such owners usually own the actual building and do not have the huge debt of pivate equity trusts companies.
    It also has to be remembered- WHO would wish to invest if they risked a great personal loss? What would happen then?

  4. Cutting staff levels back to a dangerous level can save a lot. I started work on an EMI nursing unit with 3 RNs & 4 HCAs on daily and 1 RN & 3 HCAs at night. Over 2 years this was dropped to 1 RN & 2 HCAs days and 1 RN with 1 HCA at night
    The residents were violent and unpredictable. The manager & the company didnt care It was profit before care

  5. Comment from Lenin;
    Private equity firms that run care home chains will only work with lap dog ‘unions’ such as the RCN; the only way to infiltrate this system is to form ‘secret societies’ of UNISON/UNITE members within the care homes, armed with my assessment form, and hidden cameras. The assessments to go to the CQC on behalf of relatives; abuse/neglect (inc. short staffing/poor quality staffing), to the press and police, anonymously if need be.

    The system will not allow reform by negotiation.

    Comrade lenin nightingale

  6. Lenin Nightingale sayS- excellent report highlighting the debt-ridden nature of private equity trusts, and the forces that own the government. A follow-up would be a suggestion of a radical alternative. I will be soon writing aN article about what is happening in the USA , and what will be happening in the UK.

  7. Many miss the point- 12% return (ie profit) is given to each investor, management fee, and repayment of debt removed from the fee per resident, BEFORE any costs come out ie money for staffing/food/beds etc.
    How much clearer does this need to be said ?

  8. Lenin- wonder why certain major care charities do not decry this ? Just check out who funds them. “Do not bite the hand that feeds. “

  9. Some asked re Lenin’s thought on Four Seasons;
    lenin’s thoughts …

    THE SOLE AIM OF PRIVATE EQUITY GROUPS INVOLVED IN CARE OF THE ELDERLY IS PROFIT – THE ELDERLY ARE NOTHING BUT A SACK OF TENNERS TO THEM!
    THE ONLY EMANCIPATION FOR THE DOWNTRODDEN OF AFRICA IS TO DITCH HYMNS AND SING THE ANTHEM OF REVOLUTION!
    THE ONLY EMANCIPATION FOR DOWNTRODDEN NATIVE AMERICANS IS TO FOLLOW THE MORNING STAR OF REVOLUTION!
    THE ONLY EMANCIPATION FOR DOWNTRODDEN DOCTORS AND NURSES IS TO OVERTHROW THEIR GOVERNMENT APPOINTED OVERLORDS

    MOVE FORWARD WITH A REVOLUTIONAT HEART!
    The one and only Lenin Nightingale .

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