13 September 2018: Bank of Ireland has revealed insights from a review undertaken to examine the future needs and requirements of nursing bed supply and demand. The findings were presented at an event aimed at the Long Term Care sector in Ireland.
Bank of Ireland’s healthcare team analysed and projected the needs on a county by county basis – up to 2026 – drawing from each county’s unique demographic profile.
Speaking at the event, Hilary Coates, Head of Health at Bank of Ireland said; “Our analysis suggests that an undersupply of beds will be more of an issue regionally. With Dublin benefitting from more attractive Fair Deal rates and better access to staffing, the expected level of nursing homes built in counties with lower Fair Deal rates may not materialise. The capital value of greenfield nursing homes once operational may, as a result of the Fair Deal rates and increased staff costs, be lower than the development costs.”
Ms Coates continued; “At Bank of Ireland we want to support the success of healthcare businesses in providing sustainable long term care. The building of nursing homes should be determined by demographic demand. This ensures alignment of interest from resident to nursing home provider which is critical for sustainability and at the heart of every funding decision we make.”
“Timing and location cannot be underestimated. An oversupply means nursing homes with empty beds and an undersupply will have negative repercussions for people and communities who will require them.”
Ms Coates concluded; “However, the vast majority of residents are in nursing homes under the state’s Fair Deal Scheme. Therefore it may require a change in policy direction (and Fair Deal rates) to promote more balanced regional development to ensure that capital investment is directed to those regions where new bed stock will be most needed. This approach will lead to a more sustainable market allowing communities to thrive.”