Thursday 19 October 2017

Elderly will never be the winners if nursing home fees remain a lottery

Society must stay vigilant to stop vulnerable residents suffering as corporate operators focus on dividends, writes Stephen McMahon

'Government investment in residential care facilities will be dwarfed by private money investment.'
'Government investment in residential care facilities will be dwarfed by private money investment.'

Stephen McMahon

Healthcare costs will grow to meet the demands of an ageing population. Irish society will depend on private money to fund that need, now and in the future.

Looking at the industry over the coming years, my sources involved in running and investing in residential care tell me that, be it home-grown or international vulture funds, wealthy individuals or corporate entities, they will invest an estimated €500m per year or €5bn over the next 10 years, building some 20,000 new nursing home beds to Hiqa's exacting standards.

Not all of this stock will be new beds, but rather replacement for current beds that do not meet Hiqa standards. Government will spend up to €530m, including €150m in public-private partnership or alternative funding arrangements. The government spend will be dwarfed by private money investment.

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