An Exploration of the Costs of Residential Care Home Closures: A Mixed Method Approach

Context: Between 2015 and 2020, 1,578 care homes in England closed, affecting 48,600 individuals. The financial and economic impact of such closures on various stakeholders remains largely unquantified. Objective: To develop pathways for care home closures from key stakeholders’ perspectives, quantify associated costs, and explore the economic implications to key stakeholders. Methods: A mixed-methods approach was adopted across three stages: qualitative analysis of stakeholder interviews, development of care home closure pathways, and cost analysis, including sensitivity analyses. Findings: The public sector cost for a single care home closure over 12 months was estimated at £30,550 (2021/22 prices) or £34,185 (2023/24 prices). Sensitivity analyses showed costs could range from £4,400 to £66,490 (£4,924 to £74,398 in 2023/24 prices). Qualitative findings indicated various financial implications for residents, families, and care staff, including top-up fees and increased travel costs. Limitations: The study relied on assumptions and proxy costs due to limited data availability, potentially increasing uncertainty in cost estimates. Whilst methods are transferable, findings relate specifically to England. Implications: The findings highlight the need for careful planning and resource allocation in managing care home closures. Future research should explore the association between costs and outcomes through economic evaluation to inform cost-effective strategies for addressing care home closures.