Private nursing homes are being driven out of business because of the high cost of implementing new quality standards, according to a new survey.
Nursing Homes Ireland, which represents private nursing home operators, also criticised the average weekly fees being paid by the State to private nursing home operators under the 'Fair Deal' scheme.
The fees are over €500 a week lower than the average weekly cost of caring for a patient in a public nursing home.
The survey found that since their introduction in July of last year, 450 private and voluntary nursing homes have spent €35m, or €77,872 on average each, on bringing their homes up to the standards demanded by the Health Information and Quality Authority.
On top of this, NHI says its members have seen a 10% increase in staff costs and a 12% rise in food spending over the past two years.
NHI says the result of all these extra costs is that a number of nursing homes have indicated they will be closing, as the cost of compliance with the new standards is too high.
The survey also found that nursing homes have to contend with commercial rate and energy cost increases, as well as meeting the costs of the registration and inspection regime.
NHI says this situation is compounded by the rates being paid by the State to the operators under the Nursing Home Support Scheme or 'Fair Deal' which was introduced last October.
Under the scheme, the State and patients share the cost of their care.
The NHI claims the National Treatment Purchase Fund, which negotiates fees with private nursing homes on behalf of the State under the 'Fair Deal', is failing to recognise the increased costs.
It points to the inequity of the situation, when public nursing homes average weekly fees are €1,371, while private nursing homes are only receiving €831 a week on average per patient under the 'Fair Deal'.
NHI Chief Executive Tadhg Daly has called for the Minister of State with Responsibility for Older People and Health Promotion, Áine Brady, to facilitate round table discussions with all the relevant parties, to iron out the situation.
In response, Ms Brady said she was happy to work with NHI to resolve any issues that were arising.
The survey also found that 84% of nursing home residents are high or medium dependency, that half of all residents are 85 years of age and over a third have been diagnosed with dementia.
