How to Reduce Overheads in a Care Home Business

When you’re running a business, reducing your expenditure is an important way of increasing your profitability. If you can achieve the same outputs with fewer resources, a larger percentage of your revenue can be classified as profit, thus enhancing your commercial success. However, knowing which costs to cut is critical to success. To find out how to optimise a care home business, take a look at the overheads you could reduce:

1. New Technology

Embracing new technology can be a viable way of reducing your long-term running costs. State-of-the-art powered height adjustment seats and transfer seats can increase efficiency when providing residents with personal care, for example.

When you incorporate new technology into your care home, it enables staff to complete tasks more quickly, while still providing residents with the care, attention and dignity they deserve. Additionally, relying more on technology, rather than manual assistance, can prevent staff injuries and keep your workforce healthy.

2. Equipment

Care homes need to use a variety of equipment to ensure that residents are safe and well cared for. While some types of equipment can be used multiple times, there will be many items that are single use for hygiene reasons, such as gloves, wipes and dressings. By switching to a different supplier, such as a medical supermarket, you can substantially reduce your costs while still equipping your care home with the high-quality supplies you need.

3. Utilities

Like any business, care homes have to pay for the energy they use. Depending on your facilities, this may mean that you’re paying for electricity and gas, as well as for amenities like water, broadband and telephone lines. These costs aren’t avoidable but there’s a good chance that they can be reduced.

It only takes a few minutes to run a comparison search and find out how much you could save by switching to a different provider or signing up to a better rate with your existing utility companies. By keeping your eye on the market and regularly switching suppliers, your care home business can make significant savings throughout the year.

4. Flexible Staffing

Staffing costs account for a substantial proportion of care home running costs. You’ll need to meet the relevant guidelines when it comes to ensuring that a certain number of qualified staff are on duty, depending on the number of residents you’re caring for. However, a flexible approach to staffing can reduce your overall running costs.

If you hire 70% of your staff on a permanent basis and rely on agency staff to fulfil the remaining 30% of roles, for example, you can adjust your requirements based on your occupancy rates. Instead of paying 100% of in-house staff, even when occupancy rates are reduced, you can cut your costs when excess staff aren’t required.

Running a Successful Care Home

Managing a care home can be a challenging yet rewarding role. As well as having the opportunity to grow your business and achieve commercial success, you’ll also have the satisfaction that you’re providing high quality care to your residents and delivering genuine value to your community.