Care & Medical Sector

Every medical company and care agency is different; however, there are certain common issues that healthcare businesses face which are unique to the sector. Issues that we see regularly at RMT.

Squeezed Margins and Rigid Rates

The healthcare sector is currently caught in a structural squeeze. You often face “top-down” pressure from fixed NHS and Local Authority tariff rates that fail to keep pace with inflation. Meanwhile, “bottom-up” costs are soaring.

The result is often loss-making care packages or clinical contracts that drain cashflow. Under-pricing of complex care tenders at the outset frequently leads to long-term financial distress.

Operational and Regulatory Headwinds

• The NIC Burden: Recent increases in National Insurance Contributions for lower-wage staff have disproportionately hit care agencies with large workforces.
• Drug Supply & Pricing: Global supply chain instability and new trade deal dynamics mean drug prices are rising while availability remains unpredictable.
• Estate Costs: For those running large sites like care homes, the 24/7 requirement for heating and energy has become a massive overhead.
• The Recruitment Crisis: Tightening immigration controls and changing visa environments have made it harder and more expensive to source qualified staff, leading to a reliance on expensive agency “temp” labor.
• CQC & Compliance: Maintaining “Good” or “Outstanding” ratings requires constant investment. A dip in rating can lead to suspended placements and immediate revenue collapse.
• HMRC Debts: While HMRC was lenient during the pandemic, they are now frequently rejecting Time to Pay (TTP) deals and taking aggressive enforcement action against healthcare providers.

Act Early to Protect Your Registration

The most important thing is to engage with RMT healthcare experts early. We provide a free initial assessment followed by a written report detailing the best strategy to help YOU restructure YOUR business.

A common concern in this sector is the impact of insolvency on CQC registration or NHS provider licenses. In a CVA, because the legal entity remains the same, your registration usually remains intact. In a pre-pack administration, the process is more complex as ownership changes. Our team understands these nuances and will guide you through the regulatory hurdles.

Our Track Record

RMT has extensive turnaround experience with healthcare firms, ranging from large residential care groups and specialist nursing homes to medical device manufacturers and domiciliary care agencies. We understand the sensitivity required when dealing with “people-based” businesses where patient safety is paramount.

We will always set out plans to AVOID formal insolvency action if possible.