2008 sets the challenge

Will 2008 be a year of acquisitions, sales or riding out the credit crunch? Ted Smith tells Julie Griffiths what the next 12 months will mean for Craegmoor.
(By kind permission of Caring Business, the leading care sector magazine)

Ted Smith, chief executive of Craegmoor Healthcare, predicts the care market will be buoyant in 2008. But, he says, there will be differences from the market of the last year. ‘The basics will remain’ he says. ‘Quality care will need to be provided and care providers that put their service users first and who reward their staff properly will succeed. But within that there will be some complexities.’ 

Mr Smith points to the increasing move from care homes to supported living for those with learning disabilities and mental health problems. This, combined with the trend for elderly people to live at home for longer, will result in some pressures.

He sees another challenge as trying to ensure more honesty between providers and local authorities about costs. ‘There’s evidence that local authorities are procuring care rather than commissioning it. Price is a factor in the decision but people paying the bills need to realise that it’s not the only one,’ he says.  For Craegmoor, 2008 will be a time for placing the service user at the heart of everything the company does, says Mr Smith. This follows a consultation that has been running since February 2007 in which the views of all 4,000 service users have been gathered.

The coming year will also mean ensuring Craegmoor can offer the best-quality care. ‘We’ve sold 61 of our poorest-quality homes in the past two years,’ says Mr Smith. ‘So we’ll definitely be looking to expand now. We’ll be looking for organic growth and, in a modest way, acquisitions. ‘But I’m not going on a mission of beds for beds’sake. We’ll only look at acquisitions if it enhances the estate.’

Extracted from Caring Business January 2008 www.caringbusiness.co.uk