The Financial Model

The financial model is required to ensure a formula is devised to establish a figure for the true cost of care per resident per week. The model must be created by an independent consultancy firm specialising in the social health care sector. The companies that would be considered for this analysis would be Laing & Buisson, PriceWaterhouse Coopers, Ernst & Young, and Accenture. These organisation are renowned for the work they have done for the social health care sector.

The Financial Model has to be developed such that it accounts for all the variances in costs across the UK. It is not feasible to calculate an average cost per resident per week for the entire UK as there are significant regional differences in cost to providers. To calculate an average cost of care would not be an accurate reflection for the purpose of establishing a true figure for the cost of care. The factors that will be considered when constructing the Model are

• Operating costs
• Staff costs
• Number of Beds
• Occupancy
• Financing costs
• Capital value per bed