Residential Nursing Care in the UK Industry Market Research Report Now Updated by IBISWorld

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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. 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. 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. For these reasons, industry research firm IBISWorld has updated its report on the Residential Nursing Care industry.

IBISWorld Market Research

IBISWorld Market Research

An ageing population will support a steady rise in revenue

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.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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