The Fair Deal Scheme, established in 2009 to support residents requiring nursing home care, has failed to keep pace with rising operational costs, it said.
Tadhg Daly, chief executive of Nursing Homes Ireland said: "This is not just a crisis for the nursing home sector - it's a problem for all of society. We're seeing communities lose their local nursing homes, families forced to travel long distances to visit their loved ones, and vulnerable older people denied the care in their community they deserve.
On average, private and voluntary nursing home residents receive €650 less per bed, per week than those in HSE/public nursing homes - amounting to an annual shortfall of €33,800 per resident.
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