Originally Posted by
justakiwi
This comment is more important than you might realise. I can’t find it now, but I read a Morningstar commentary the other day, on RYM. All pretty positive but they said one of the biggest potential risks for RYM is a drop in the standard or quality of care. Any slide backwards, reduction in service quality etc, has the potential to destroy their reputation in a very big way.
This applies to every provider of care. None of them can afford to pull back on costs when it comes to care. They must continue to be seen as providers of quality care. People considering moving into villages or apartments are doing so with the intention of it being their “last stop” before departing the planet. They will not only be looking at what the villas/apartments offer, but also what future care service the provider can offer at the same location. If it is a toss up between two suitable providers that both meet their needs in terms of geographical location, village lifestyle, cost etc; they will probably choose the provider who they feel provides the best future care/hospital/dementia option. I think the time will come where people will be reluctant to go with a stand-alone village. Those villages will eventually be forced to provide on-site care options too, if they want to compete.
Care may not be the place to make big profits, for reasons a we have already discussed. But never underestimate the value of a care provision to the overall value to the business.