09/06/2026
The Biggest Financial Problem We See in Care Businesses Isn't Local Authority Rates
Every time the financial performance of a care business is discussed, the conversation quickly turns to Local Authority and NHS rates.
And rightly so. The pressure is real.
But after working with domiciliary care providers for many years, we've learned that low rates are often only part of the problem.
Too much attention is given to what cannot be controlled, while opportunities within the business are often overlooked.
Before a provider negotiates a higher rate, we frequently find money already being lost through weak financial control, inefficient processes and poor visibility.
Travel time isn't measured.
Productivity isn't monitored.
Payroll utilisation isn't understood.
The true cost of delivering care isn't known.
Pricing is often on a "we'll make it work" basis.
When these areas aren't managed, financial performance will always fall short of its potential.
The biggest challenge is often not the rates themselves.
It's the mindset towards financial control.
Many owners still see finance as collateral damage; something squeezed between recruitment, CQC requirements, service delivery, complaints, rotas and staffing shortages.
But financial control is not administration.
It is one of the most important control systems in the business.
It tells you where money is being made, where it is being lost and what action needs to be taken next.
Just as a care provider would never operate without care plans, medication records or compliance procedures, a business should never operate without strong financial control.
The providers who perform best financially aren't necessarily those receiving the highest rates.
They're the ones who understand the importance of financial control, operational efficiency and financial visibility.
Because they know one simple truth:
Before focusing on what you cannot control, make sure you are controlling what you can.
Control comes first.
Profit comes next.
Growth follows.
💚 That's the thinking behind everything we do at Marele.