I caught some of that R4 programme too. It made stark listening. I had wrongly assumed judging by the weekly amounts that care homes charge those not entitled to public funding, that the owners would be rolling in to, so to speak.
Clearly, if the majority of their income comes from council-funded people they are going to struggle. However, I have to wonder if this will not backfire on the councils and their elderly. If homes close and private payers need to find new accommodation, those homes remaining open will take on those people in preference to those from the councils and the latter will eventually run out of available places to go. When that happens, the outcry will be predicable.