We are often asked by our customers to provide some guidance on improving quality assurance procedures for compliance purposes, in addition we are asked for advice on improving innovative Person-Centred Care.
They are often sceptical when it comes to looking at the comparison of CQC Ratings, Occupancy and Income. We at RedRoyal Consultancy Ltd carried out our own piece of research to produce some facts that would provide comparative figures.
Our research was conducted by using the CQC Reports, taking the first ten from each rating, Outstanding, Good, Requires Improvement and Inadequate. Using the reports, taking two figures, registration for the number of residents and the occupancy at the time of the inspection. Any report that did not clearly display both figures was disregarded, and we moved to the next report. A total of ten reports were viewed for each of the ratings to provide a small sample of Occupancy rates for each graded category.
The figures below were produced on the 21st March 2019 giving a clear indication that occupancy rates are closely linked to the CQC rating.
Table 1 indicates the Occupancy rate by percentage by CQC Grading.
Table 2 shows the numbers recorded by category.
Table 3 is a guide that provides an insight into the loss of potential gross income resulting from lower occupancy rates per resident, with a weekly charge of £500.00.
Table 4 shows the same loss of income based on a weekly charge of £500.00 per resident in Residential Care Home that is registered for 30 residents.
In this example the losses that correspond directly to the lower occupancy rates and accumulate to a massive £239.850.00. If a service is charging £900.00 per week this loss could be increased to £431,730.00. This in my opinion can be the direct cost of not investing in quality Person Centred Care, though this is not the subject of this research the CQC Inspection is based on the delivery of High-Quality Care that should be Safe, Effective, Caring, Responsive and Well-led.
Our research clearly demonstrates the links between CQC Ratings and Occupancy, as the CQC Rating is based on the standards of care delivered it should be assumed this is the direct cause of the reduced occupancy and income. Look at your potential customers, and the journey they take as they choose a care home for their loved ones?
Research will take place, they may compare Care Homes in the area and if yours requires improvement or is inadequate, and just down the road there is an outstanding Residential Care Home, which are they most likely to choose?
There is a clear connection between CQC Ratings and Occupancy rates which in turn are linked directly to the loss of potential income. In any business there is a need to continually evolve and develop which involves some continued investment.
For example take a quick look at our roads which are extremely well developed, yet with out continued investment they literally fall apart, I’m sure I don’t need to mention pot holes.
With some ongoing Investment, High Quality Reviews of your provision against recent developments, Innovative and Person Centred holistic Care for Health and Wellbeing, Outstanding is the basic standard that should be achieved by Residential Care and Nursing Homes.