nca annual conference 2011 robert elliot chief executive
TRANSCRIPT
NCA Annual Conference 2011
Robert Elliot
Chief Executive
REALISING THE OPPORTUNITIES
LETS LOOK BACK
A new world order is upon us!It will take 10 years to recover from the
credit crunchUK Government debt was out of controlSovereign debt would spread throughout
Europe
LETS LOOK BACK
More Bank bailoutsUK was the most indebted country inside
the G20 countriesTax revenue at its lowest since 1932Hyperinflation is on its way!
LETS LOOK BACK
US Dollar, Euro and Sterling will continue to lose value
Major cuts in public spending cannot be avoided
Unemployment will continue to rise
Am I a smart ass or just ahead of my time??
I’ll let you decide…
“THE NEW NORM”
Slow GrowthHigh unemploymentBroken governmentUK Debt is higher now than 12 months ago!Leading to Stagflation
Ranking Country Rating Ranking Country Rating1 Greece E 25 France C2 Ireland D- 26 Poland C3 Spain D+ 27 Mexico C+4 Iceland D+ 28 Indonesia C+5 Pakistan D+ 29 Bulgaria C+6 Venezuela D+ 30 Czech Rep. C+7 Portugal D+ 31 Kuwait C+8 Egypt C- 32 Philippines C+9 South Africa C- 33 Australia C+
10 UK C- 34 Germany C+11 Italy C- 35 Russia B12 Argentina C- 36 Netherlands B13 Hungary C 37 Denmark B14 Belgium C 38 Austria B+15 US C 39 Norway B+16 Canada C 40 Sweden B+17 Finland C 41 Chile B+18 Japan C 42 Saudi Arabia A-19 Turkey C 43 Malaysia A-20 Uruguay C 44 Switzerland A-21 Brazil C 45 South Korea A-22 Estonia C 46 Thailand A23 New Zeland C 47 China A24 Colombia C
SOUTHERN CROSS
A disaster waiting to happen!Not prepared to listenExtremely poor managementAll of which was known to the powers that
be!
FINANCIAL ASSESSMENT
1993 CARCH asked their members to carry out a financial assessment on all self
funding residents before they were admitted into the Care Home.
Before their time?
GUESS WHAT?
Several LAs throughout England have commissioned us to carry out a financial assessment on all potential care clients…
At long last we are starting to see some partnerships developing between the LA and private enterprise.
DILNOT REPORTWidely welcomed across the sector.Limit the cost of care to £35,000Will it be implemented?What about GRAG?Excluded items ie: Bonds insurance productsWhere can you get DB&B for £27What happened to a “Fair Price for Care”?
WHAT DID DILNOT NOT SAY?Where the money is coming from to fund his
proposalsWhat real effect it would have on an individual
funding their own care How do you deal with the “Real cost of Care”
ie. the difference between the LA tariff rate and the actual cost the home is charging?
ATTENDANCE ALLOWANCE
Consider how better to align benefits with reformed social care funding system.
Needs re-branding to clarify its purposeMeaning???Abolish Attendance Allowance
CASE STUDYMrs Jones aged 84Property value of £225,000Savings of £40,000Pension income £13,600Care Fees £28,600Shortfall £15,000
CURRENT SYSTEMClient is totally self funding until her funds
dwindle to £23,250The Client can invest the money to obtain a
return of £5.66%The client can purchase an Immediate Care
Plan to guarantee her fees for life.Client entitled to 12 week property disregard
DILNOT PROPOSALSClient remains self funding until her capital
reduces to £100,000Clients loses Attendance AllowanceClients contributes £1 for every £250 over the
lower limit £14,250This means the client contributes to her care
fees by £343 per week
SO ARE YOU IN THE RIGHT INDUSTRY?
The answer depends on your business model.Do you have a good mix of self funding clientsCan you retain your best staffDo you have a niche within the care sectorAre you working to a business plan
CONCLUSION
Ensure self funders get the correct advice which enables then to pay your fee’s
CareAware and Care Asset can help you achieve a sustainable profitable model.
THANK YOU!