An ageing population will support a steady rise in revenue
London, United Kingdom (PRWEB) July 22, 2012
Residential nursing care involves 24-hour nursing care for residents typically aged 75 years and older. Demand for residential nursing care is being promoted by an ageing of the population. According to IBISWorld industry analyst Nigel Fitzpatrick, “the Residential Nursing Care industry is expected to generate revenue of £4.35 billion in 2012-13, representing about 3.5% of total health expenditure in the United Kingdom”.
Industry revenue is expected to increase at an annualised 0.2% in the five years through 2012-13. Government budget austerity is resulting in declining local authority admissions and low increases in fees paid by the National Health Service (NHS) and local authorities to residential nursing care operators. This is being partially offset by growth in admissions of, and fees paid by, self-funded residents. Revenue is expected to decrease by 1.0% in 2012-13. Industry revenue is forecast to grow over the five years through 2017-18. Fitzpatrick adds, “this growth will be underpinned by rising demand resulting from an ageing population and an increase in the average dependency of care related to those residents requiring a higher level of nursing support”. Low growth is expected in average fees per place (particularly in the short term), which will adversely affect industry revenue and profitability.
The Residential Nursing Care industry exhibits a low level of market share concentration, with the top four organisations accounting for about 37% of industry revenue. The four largest operators in this industry have grown through acquisition and hold large market share positions relative to other players, which include a large number of small operators. Major companies include Four Seasons Health Care, BUPA, HC-One and Barchester Healthcare.
For more information on the Residential Nursing Care industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Operators in this industry provide residential care combined with nursing care as required by the residents.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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