Valuing Care’s Cost Breakdown service is available once the Care Home Fees Calculator has assessed the placement as not Value For Money.
The service, which costs £120 (inc VAT), provides you with a PDF document summarising the “model costs” for the specified placement.
You can use the information to discuss the weekly fee with the provider once you have requested information about how the current price is set.
The Valuing Care cost breakdown provides you with the benchmark information to start to understand the costs and make informed judgements as to what you feel is acceptable. As an example the provider may be able to evidence that they pay a higher salary to staff than our model as an incentive to provide a more consistent workforce.
The breakdown is based on one bed, so it is useful to know how many occupied beds the provider has as this will enable you to understand how the individual costs relate to the overall establishment costs.
As an example:
- Our cost model would expect a weekly cost for gardening services to be in the region of £5.92 per bed
- If the care home has 66 beds this would equate to an overall weekly cost of £390 / annual expenditure of £20,370
- This would reasonably assume a full-time salary for one person (including on-costs – NI/ pension / cover / AL etc)
- If the provider in this example stated gardening costs of £10 per week you would be in a good position to challenge as this would equate to almost double the model expected rate.
Please note that fees are set by the providers and buyers cannot insist they pay the model rate, the charge rates are not overseen by Government Legislation
If there is a high demand for beds in your area then the provider may not be willing to engage in a discussion about negotiating fees however the information may be a useful to challenge annual inflationary uplift requests.