Financial solutions for struggling care homes
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Medical practices, care homes and care services that receive poor CQC ratings can be forced out of business. With an injection of funding, those businesses can be turned around, and saved
The CQC – Quality Care Commission is the independent regulator of health and adult social care in England.
They are responsible for making sure that health and social care services meet the necessary standards to provide people with safe, effective, compassionate, high-quality care.
Their role is to drive up standards thought the healthcare sector. To this end they produce guidelines treatment, care and support provided by hospitals, GP practices, dental practices, ambulance services, care homes and home-care agencies. They also conduct regular inspections of practices, homes and facilities.
The CQC’s ‘Ofsted-style’ regime rates practices and businesses on several criteria. In extreme cases they can place a care provider in ‘special measures’, setting our the stringent health and safety standards which must be met. This gives a clear timetable within which they must improve the quality of care they provide, under threat of further action being taken. In extreme cases, this can include cancelling their registration.
Many businesses are able to act on the demands of CQC, and make the changes and crucially the investments to turn their businesses around. However, in some cases, those businesses that receive a negative response or rating after an inspection do not have adequate resources to respond to recommendations and are left struggling. In some cases, this has left practices with no choice but to close.
At Rangewell, we provide a wide variety of funding to the medical, and related sectors, and can help practices and businesses in which have received notices secure the funding they need to support meeting the requirements of the CQC.
Investing in equipment to meet CQC needs
A CQC review will pinpoint equipment shortfalls of all kinds. Inspections we want to see evidence of reliable systems, processes and practices in place to keep people safe.
This includes the provision of adequate equipment, its maintenance and ensuring that equipment is not out-of-date.
Medical equipment that should be subject to regular checks includes:
- Fridges used for storage of medicines
- Nebuliser compressors
- Pulse oximeters
- Electronic ear irrigators
- Portable appliances
The commission may also look at non-medical equipment, such as the catering and seating equipment of care homes.
Asset finance can be the solution for lets you spread the cost of the equipment - or assets - you need. There are several types of asset finance:
Hire Purchase allows you to hire equipment until you have paid for it, when the items covered become yours. It can spread the cost of items such as seating, beds and tables that you expect to give service for the long term. HP agreements generally last between 12 and 72 months and require a 10-20% deposit plus fixed monthly instalments. A medical bed, a hoist or basic catering equipment might all be bought with hire purchase agreements.
Many medical equipment dealers will offer their own purchase plans to support their sales. At Rangewell we have found that these finance plans often mean paying more for the equipment you need - we can usually find HP arrangements which undercut those offered by dealers.
Leasing operates like a rental agreement. You pay a monthly charge to use the asset. It’s common for things such as large instruments - from ultrasounds and monitors to MRI and Pet scanners with high costs and a limited life. Not only does it make multi-million pound assets affordable, it at means you can more easily update your equipment if a new technology becomes available.
You might choose to lease your IT equipment, which can provide the extra peace of mind that comes from knowing if something goes wrong, the lease company can be responsible for dealing with it.
Find out more about the asset funding solutions which can help you meet your CQC obligations <link>.
Bringing in and training staff to meet CQC needs
CQC inspection will cover staffing levels, and staff skills. All healthcare professionals should have received training to operate the equipment they use. The CQC has produced a raft of detailed regulations which surgeries, clinics, hospitals and care homes must comply with. These include the need to employ suitably qualified and competent staff.
Bringing in trained staff may be costly, and care homes and others which are already struggling may find it difficult to fund additional staffing. Working capital finance can provide cash to deal with the large initial costs and overheads of taking on additional staff, from agency nurses to cleaners. It is usually designed to be repaid in the short- to medium-term, once the problem has been dealt with.
Working capital finance can also fund training, allowing existing staff to be helped to deliver the standards required by CQC reports.
Find out more about cashflow finance for medical facilities dealing with a negative CQC report.
Bringing in specialist consultants
A number of consultancy businesses exist which provide specialist help for medical organisations which have failed, or are in danger of failing their CQC assessments.
These organisations can bring a wealth of expertise to the work needed to improve a negative status - and move organisations to ‘outstanding’ ratings.
The fee for their servies may not be cheap, and it may be difficult to provide from your existing cashflow. However, because their services may be key to the continuation of the business.
There are a number of solutions which may be able to provide the support to your cashflow that you need. Funding secured on your premises, on your goodwill and your existing investment in equipment can all provide cost effective ways to deal with the cost of specialist advice. At the same time, it can be structured to cover the costs of the measure the consultants may recommend.
Call us about large scale funding when a specialist consultant is needed.
How we help you find financial solutions to a negative CQC assessment.
Any medical business can run into problems with CGC assessments. Most will be easily dealt with, by understanding the issues raised and changing working practices involved.
However, more serious breaches will require investment. When assessments find thatmajor investment in equipment, facilities and training is required, you must have the most cost-effective source of the funding you need.
At Rangewell, we know the solutions which can help your business deal with with the challenges of a negative CQC assessment. We can even provide those solutions if you have a damaged credit history or CCjs, which are often considered red flags by most lenders.
We can do this because along with knowledge of all aspects of business finance, we have experts who work purely in the medical sector.
We know that turning around your business to meet the demands of the CQC may take Several types of investment. We use our expertise to find the most competitive deal for all types of finance, including Professional Loans, Unsecured and Secured Loans. As well as conventional loan products, we can help you find Alternative Funding, using new loan providers and innovative funding solutions.
Whether your issues can be solved with a simple quick cash injection, or require a more fundamental approach which demands a complicated ‘Jigsaw’ funding plan made up of a combination of products for the long term, we can work with you to find the answers.
Call us now to get our medical funding experts working with you to answer the challenges the CQC presents.
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Download Rangewell’s free and detailed guide to Finance for your Care Home
What types of finance are available to Care Homes and business providing residential care?
What is Asset Finance - and how it gives you a business advantage
Can finance help me increase the number of care home places my property offers?
Why not all providers are equal - finding the one that’s right for you
How we can help you pay less than 0%
The downsides to finance - and how to avoid them
How to arrange finance - What paperwork do you need?
What type of information will I need to provide with an application (eg, company numbers, registered office details, VAT numbers, accounts)?
Are all lenders authorised and regulated by the Financial Conduct Authority?
How do I go about arranging Care Home finance?
Key terms explained
More information available in our care ecosystem for businesses in the care and support sector/care model
Getting the right funding arrangement is essentialThere are many forms of business finance available. Getting the most appropriate type for your particular needs is essential to avoid excessive costs.
Your key equipment could be at riskIf you are unable to keep up repayments on a hire purchase or lease agreement, the equipment your practice depends on could be could be at risk.
Long-term financial commitmentsYou may not be able to pull out of a finance arrangement once set up. This could present a problem if you change your business plans.
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