Large numbers of care home residents who are presently private payers will be drawn within the ambit of local authority payment, Laing & Buisson has warned.
The healthcare intelligence provider has given a cautious welcome to Dilnot's proposals, saying they may finally resolving more than a decade of debate on the funding of long term care, but added that there are dangers for the care home sector.
Laing & Buission chief executive William Laing said: "Dilnot's key proposals will mean that large numbers of care home residents who are presently private payers will be drawn within the ambit of local authority payment.
"Depending on how the proposals were implemented, a significant proportion of the premium fee rates which are presently needed to cross subsidise inadequate local authority fee rates may gravitate towards the latter.
"These concerns should not stand in the way of implementation of the Dilnot proposals, but it will be necessary carefully to consider the mechanisms for implementation in order to avoid further destabilising the independent sector at a time when it is under severe financial pressure.'
According to Laing & Buisson market reports, approximately 40% of independent sector care home residents are currently private payers.
Laing & Buisson's initial estimate is that the proportion may fall to about 30-35% if the Dilnot proposals are implemented.
