Previous regulatory judgement: Brunelcare (29 March 2023)
Updated 13 December 2023
Applies to England
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RSH Narrative Regulatory Judgement
- Provider: Brunelcare
- Regulatory code: LH0269
- Publication date: 29 March 2023
- Governance grade: G1
- Viability grade: V2
- Reason for publication: Changed basis for viability grade
- Regulatory route: In Depth Assessment
Regulatory judgement
This judgement confirms the regulator’s existing assessment of Brunelcare’s governance and financial viability (G1/V2).
Based on evidence gained from an In Depth Assessment (IDA) the regulator has assurance that Brunelcare continues to comply with the financial viability elements of the Governance and Financial Viability Standard. The provider has the financial capacity to deal with a reasonable range of adverse scenarios but has material exposures that it needs to manage to ensure continued compliance.
Brunelcare’s financial forecasts continue to indicate that it generates relatively low margins. The business is therefore inherently more exposed to financial shocks. Stress testing demonstrates that certain adverse variances, including reduced care home occupancy levels, increased asset management spend and energy costs, put additional pressure on operating margins that materially reduce headroom on interest cover. Coupled with economic uncertainty in relation to inflation and interest rates, this reduces Brunelcare’s capacity to respond to adverse events.
The regulator’s assessment of Brunelcare’s compliance with the governance elements of the Governance and Financial Viability Standard remains unchanged. Based on the evidence gained from the IDA the regulator has assurance that Brunelcare’s governance arrangements enable it to adequately control the organisation and to continue meeting its objectives.
Other providers included in the judgement
None
About the provider
Origins
Brunelcare is a charitable company that provides care homes, sheltered and extra care housing, along with domiciliary care and support to older people.
Registered Entities
Brunelcare is the only registered entity.
Unregistered Entities
There are no unregistered entities.
Geographic Spread and Scale
Brunelcare manages around 1,100 homes located in Bristol and North Somerset. It also provides support and care to older people across the south-west.
Staffing and Turnover
The provider employed 854 full-time equivalent staff and reported turnover of around £40.3m in 2021/22.
Development
Brunelcare intends to develop an additional 147 units through redevelopment of existing stock, between 2025 and 2032.
About our judgements
Key to Grades
Governance:
| Compliant | |
|---|---|
| G1 | The provider meets our governance requirements. |
| G2 | The provider meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance. |
| Non-compliant | |
|---|---|
| G3 | The provider does not meet our governance requirements. There are issues of serious regulatory concern and in agreement with us the provider is working to improve its position. |
| G4 | The provider does not meet our governance requirements. There are issues of serious regulatory concern, and the provider is subject to regulatory intervention or enforcement action. |
Viability:
| Compliant | |
|---|---|
| V1 | The provider meets our viability requirements and has the financial capacity to deal with a wide range of adverse scenarios. |
| V2 | The provider meets our viability requirements. It has the financial capacity to deal with a reasonable range of adverse scenarios but needs to manage material risks to ensure continued compliance. |
| Non-compliant | |
|---|---|
| V3 | The provider does not meet our viability requirements. There are issues of serious regulatory concern and, in agreement with us, the provider is working to improve its position. |
| V4 | The provider does not meet our viability requirements. There are issues of serious regulatory concern, and the provider is subject to regulatory intervention or enforcement action. |
Note: The use of an asterisk (*) against a grade indicates that the assessment refers to a provider that is designated as being for-profit.
Definitions of Regulatory Routes
In Depth Assessment (IDA): An IDA is a bespoke assessment of a provider’s viability and governance, including its approach to value for money. It involves on-site work and considers in detail a provider’s ability to meet its financial obligations and the effectiveness of its governance structures and processes.
Stability Checks: Based primarily on information supplied through regulatory returns, a Stability Check is an annual review of a provider’s financial position and its latest business plan. The review is focused on determining if there is evidence to indicate a provider’s current judgements merit reconsideration.
Reactive Engagement: Reactive engagement is unplanned work which is triggered by new information or a developing situation which may have implications for a provider’s current regulatory judgement.
Stability Checks and Reactive Engagement: In some cases, we will publish narrative regulatory judgements which combine evidence gained from both Stability Checks and Reactive Engagement.
For further details about these processes, please see Regulating the Standards.