Agency faces financial crisis due to Long-Term Care decision

Monday 22 January 2024

A care agency looking after islanders with complex needs has warned that it is facing a financial crisis as a result of a cap on Long-Term Care rates.

Care Hub, which has around 50 clients, says it has been unable to set a sustainable hourly rate for its services as a result of the government's decision to increase rates by 7.7% – 2.4% below the latest rate of inflation.

Anne McConomy, the agency's Registered Manager, said that the blanket approach announced by Social Security Minister Elaine Millar in November ignored the disparities in care costs between private providers.

While agencies charging £40 per hour have been able to increase their rates by £3.08 in line with the government's decision, Care Hub's fees rose from £30 to £32.31 this month, which Ms McConomy said was below the rate that it needed to charge.

She said: "We need to increase rates to £35 to remain viable, and because we aren't able to do that, we have been placed in an unsustainable financial position.

"Long-Term Care managers have suggested providers should compensate by taking on more private clients and charging them higher rates, but this isn't feasible for Care Hub, as all our clients are funded by LTC and we focus on providing care regardless of financial status."

Care Hub, which has around 90 staff on its books providing care to 50 clients with complex mental and/or physical needs, anticipates that it could face a deficit of £200,000 this year if the situation is not resolved, and has been frustrated at being unable to communicate with ministers.

Ms McConomy said she had initially sought to speak with Health Minister Karen Wilson but had then been pointed to Deputy Millar. No acknowledgment or response had been received from Deputy Millar for more than a month, she added.

Pictured: Ms McConomy said neither the Health or Social Security Minister had responded to her concerns.

Increasing costs, driven by inflation, wages and operational expenses, were not taken into sufficient account by the 7.7% LTC rise, Ms McConomy added, limiting the ability to invest in improved facilities, technology and staff training.

The agency is also concerned that quality care may become inaccessible to those who are reliant on government funding.

Care Hub's warning follows similar concern from the Jersey Care Federation, which said islanders might be turned away by providers, leading to an increase in bed-blocking.

In response, Deputy Millar refuted the suggestions that she had ignored Care Hub, as she said she had no knowledge of receiving any direct communication. 

She added that other providers hadn’t raised issues with the 7.7% increase 

“The 7.7% increase reflects average earnings and I believe that historically, this is the general guideline for increases to LTC rates, as care costs are most closely linked to staffing costs,” she told Express. 

A government report into the cost of domiciliary care is set to be published within the next two months, Deputy Millar added.