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27:03:18
Cross subsidisation in care homes – Government response
More than half of care home places in the UK are comprised by local authority-funded residents. However, due to many factors, not least the negotiating power of local authorities and the squeeze on their finances, it is thought that local authority fees are provided near to or at cost for care home providers. Therefore, in order to make this a viable financial model, some care home providers will charge self-funding clients more than their local authority equivalents, which is known as “cross-subsidisation”.