How to Set Up a Care Home in England

Establishing a care home is a significant undertaking that requires careful planning, adherence to regulations, and a commitment to providing high-quality care. The Care Quality Commission (CQC) regulates care services in England, and understanding their requirements is essential to your success. This blog outlines the steps to set up a care home, along with estimated timeframes for each stage.

Step 1: Research and Planning (1-2 Months)

Before you begin your journey of setting up a care home, it’s crucial to conduct thorough research and develop a solid plan. You need to find what type of care home is needed (residential or nursing) and where.

Market Research

Check local demand for care homes, identify competitors, and understand the needs of potential residents from your funders, the Local Authority or local Integrated Care Board.

Ageing Population: Start by analyzing the local population to determine the size of the elderly community, as they represent the primary users of care home services. You can access population data through local council websites, Office for National Statistics (ONS), or Public Health England (PHE).
Health Needs: Study the prevalence of specific health conditions common among elderly individuals, such as dementia, mobility issues, and chronic diseases. This will help you determine whether to open a residential care home, nursing home, or specialist facility.
Socioeconomic Factors: Look at the area’s income levels and the availability of social care funding. Some residents may rely on private funding, while others may depend on local authorities or the NHS for financial support. Knowing this helps to set realistic pricing structures.

Step 2: Choose a Legal Structure and Register Your Business (1 Month)

Decide on the legal structure for your care home, such as a sole trader, partnership, or limited company. An accountant can advise you on this. We strongly advice that you use an accountant that has trackable experience with care homes.

Choose a Name

Select a name that reflects your services and is not already in use. You will see that most of the names you can think of are already taken on the Companies House. Here are the most common issues and mistakes people make when trying to start a care relates busienss:

– even if there is no exact match on the Companies House, there are businesses with very similar names

– companies might trande under a different name – please check Google results as well before registering the name

– they pick a name that is too long, or too complex to be rembered

– people don’t check if the website domain is avaialable before registering the name on the Companies House

Step 3: Secure Funding (1-2 Months)

Determine how you will finance your care home. This may involve personal investment, loans, or investors. Another option is to lease.

Create a Business Plan

Outline your startup costs, ongoing expenses, and projected revenue. Bear in mind you will have significant outgoings before money starts coming in so you need to have a budget to allow for this.

Other things your business plan should contain:

Executive Summary
Business Description
Market Analysis
Organizational Structure
Services and Care Model
Marketing and Sales Strategy
Risk Analysis
Timelines and KPIs

Apply for Funding

Reach out to banks, private investors, or government grants that cater to healthcare initiatives.

Tips for Securing Funding:

Prepare a Detailed Business Plan: Investors and lenders will want to see a well-researched business plan with financial projections, a clear explanation of the business model, and a plan for regulatory compliance.
Understand the Market: Demonstrating strong local demand for care homes and explaining how your care home will fill a gap in the market will help attract funding.
Demonstrate CQC Readiness: Investors and lenders are more likely to provide funding if they are confident that your care home will meet Care Quality Commission (CQC) standards, which is crucial for obtaining registration.

Step 4: Find a Suitable Location (2-3 Months)

Location is critical for a care home. Look for a property that meets regulatory standards and is in a suitable area for your target market. Can staff and relatives access easily if they do not drive? What are the transport links like?

Property Search:
Identify properties that can be converted or are already suitable for a care home. To get set up quicker it is easier to use a home that has been registered as one previously.

Assess Compliance:
Ensure the property meets health and safety regulations and CQC requirements for care homes. You will need to meet Fire, electric, gas regulations amongst many more so you will need to ensure you research this area or get specialist support.

Step 5: Apply for CQC Registration (3-6 Months)

Registering with the CQC is a vital step in the process. The application can be time-consuming, so it’s important to prepare thoroughly.
Complete the Application Form:
This is an online form that will include details about your services, management structure, and compliance with regulations. You can register for access to the CQC portal here.

Prepare Supporting Documents:
Include your business plan, policies, risk assessments, and evidence of staff qualifications. You can find a full list of documents required for CQC registration here.

Pay the Registration Fee:
This fee varies based on the size and type of service you are providing.
CQC will ask when the property will be ready as an operational home. Be realistic as there is a lot to get ready.

Step 6: Policies and Procedures (1-2 Months)

Creating or buying comprehensive policies and procedures is necessary for compliance and ensuring high-quality care delivery.

Draft Care Policies:
If you have the experience you can develop policies that cover safeguarding, medication management, health and safety, and emergency procedures.

Buy the Policies and Procedures

There are many online platforms that offer full sets of policies and procedures. Some sell unbranded templates (you have to customise them), and some sell ready to use, branded policies.

Here are a few platforms that sell Policies and Procedures for various types of care providers:

From all, we recommend e-Care HUB for the affordability, support, and high level of customisation. The policies are ready to use in 10 minutes after the purchase.

CQC normally ask for more documentation as the application progresses so ensure you have all building checks completed that you are expected to as a landlord, and also that you have call bell systems in place ready and functional.

Staff Training:
Train your staff on these policies to ensure everyone is aware of their responsibilities and the standards expected. e-Care HUB platform offers you the possibility to share your policies online with your staff. The staff can press a button to acknowledge that they read the policy. You start with a manager in place, the manager can continue to train staff as they are recruited.

Step 7: Recruitment and Training (2-3 Months)

Hiring the right staff is crucial for the success of your care home. You need to ensure that there is plenty of workforce in the area.

Recruitment Process:
Advertise for positions, conduct interviews, and verify qualifications and references.
Induction Training:
Provide thorough training for new hires on your policies, procedures, and the specific needs of the residents they will support.

Step 8: Prepare for CQC Inspection (1 Month)

Once your application is submitted, the CQC will arrange an inspection to assess your care home’s readiness to provide services.

Conduct a Mock Inspection:
This will help identify any areas for improvement before the actual inspection.
Organise Documentation:
Ensure that all necessary documentation is readily available and well-organised for the CQC inspectors.

Step 9: CQC Decision and Launch (1 Month)

After the inspection, the CQC will make a decision regarding your application.

Await the CQC Decision:
This process can take several weeks. If approved, you will receive your registration certificate.
Launch Your Care Home:
Begin providing services to residents, ensuring compliance with CQC regulations from the outset.

More information:

Usually care homes are started by teams, groups of business people combined with care experts. This business is impossible to start on your own.
The initial investment for a care home is around £2 mil. This, if you rent the building. If you consider building a care home this can go as high as £10 mil.
If you need support with starting or managing a care home, please contact us. We have the right teams that can solve your issues in no time.