Care homes for older people, younger adults, residential special schools, children's homes and independent hospitals form part of the health care sector – often referred to within the context of long-term care (as opposed to primary care, pharmacies or other distinct areas).
There is some commonality between the subsectors in terms of valuation methodology and the value usually reflects both the underlying property and the business operated from it. However, there are very distinct characteristics in factors such as the regulatory framework, the types of company interested in operating or investing in a subsector, the nature of the buildings, competition, funding sources, and so on, that affect the detail of each individual valuation.
Care homes for older people are the most commonly encountered property in this area, and so their valuation is reviewed first. Key differences between this and the other subsectors are then reviewed, focusing on aspects that differ from care homes for older people. The valuation process for the care sector overall is reviewed, including sample valuation calculations and the risks inherent in valuations in this sector.