Clariane - comment

The Belgium paper,  De Tijd reported yesterday that the government in the Belgian region of Flanders is considering banning nursing home operators from making a profit on the care they provide. The overall Belgium business accounts for 13% of their annual revenue while enjoying slightly higher than average EBITDAR margins.  

Although we outline the percentage of the business directly impacted, the wider context of government interference in profit margins generated by European operators is of greater concern.  If the government of Flanders were successful, no doubt other regional governments, who ultimately pay for the service, would follow suit. 

The ability to legislate to control margins is challenging, especially with staff shortages and other inflationary pressures on care home providers.  The story is headline-grabbing and points to the pressures in the industry, but likely to have limited impact in the short term.