Some of the country's top banks and financial institutions are to discuss the future of the beleaguered care home sector at a flagship conference organised by leading business services consultancy Healthcare Management Solutions.

The conference, Putting Healthcare Back on Track, will see Dame Jo Williams, chair of the Care Quality Commission, giving the keynote speech to delegates.

The day-long event, which takes place on Wednesday, October 5, 2011, will examine how the sector can cope in the light of increasing cost pressures, more demanding regulation, reduced government funding and the potentially enormous upheaval following the collapse of care home provider Southern Cross.

HCMS is well placed to be at the forefront of the changes.

It is the UK's leading care home consultancy, providing care home owners, banks, financiers and insolvency practitioners with a one-stop management, support and review service.

As the market leader in its field, the Birmingham-based company has unparalleled knowledge of the £4 billion a year sector.

In the past two years alone, it has been responsible for assisting more than 500 homes, almost all of which have suffered from regulatory problems, contractual issues or financial difficulties.

Dame Jo - one of three members of the high profile Dilnot Commission whose Fairer Care Funding report, which set out key recommendations1 in relation to care home funding, was published in July 2011 - will be detailing changes that are taking place at CQC.

She will be joined by Richard Lunn, Director and Head of Care at specialist property agent and adviser Christie and Co, who is to lead a seminar on the factors affecting the value of the healthcare market.

Other guest speakers at the conference are specialist healthcare lawyer Peter Grose, partner at LesterAldridge LLP, who will discuss the increasing role of the local authorities as a quasi-regulator, and Martin Gill, Regional Managing Partner of PKF (UK) LLP Scotland, who will lead a seminar on the future financial implications for care home providers. 

Tony Stein, Managing Director of HCMS, said: "This conference is aimed specifically at bankers who are faced with the challenge of failing care homes. The aim is to highlight some of the major pressures on businesses in distress and better inform those tasked with picking up the pieces.

"There is little doubt that the industry is in crisis and that there is unlikely to be any real improvement for operators in the foreseeable future. Quite rightly, care standards are being forced up, and many operators do not have the skills or financial resources to meet these demands. These are very challenging times and so I am particularly pleased to have such important speakers and senior bankers attending this day of discussion."

The trade union UNISON has already warned that the industry is on the "brink of collapse"2, claiming that: "companies borrow too heavily, with their financial performance too weak to repay borrowings on agreed terms".

Tony Stein said such overriding and widespread concerns made it the ideal time to bring leading industry experts together for a top-level symposium.

"It is incumbent on homes to ensure they are in good financial order and on the banks to offer appropriate support for this important sector. Sadly many operators don't see the value of good management information, particularly accounts, until it's too late. It's difficult for a bank to offer support if it has nothing to base that support on." explained Tony.

"More often than not, HCMS is called in too late - when the borrower has defaulted on a loan, run up significant debts and let the homes fall into disrepair."

The conference will set out the importance of banks conducting pre-lending appraisals using HCMS's specialist expertise to ascertain if the borrower is set-up correctly for care home management.

Delegates will also learn how crucial it is to conduct regular assessments throughout the life of the loan and proactively manage the loans to ensure that borrowers are running a sound business.