The CEO of Nursing Homes Ireland has said the organisation is getting calls every week from members worrying about paying bills and fearful they will have to close their business.
Speaking on RTÉ's This Week, Tadhg Daly said 16 nursing homes have closed so far this year and many do not see a viable future.
He anticipates the situation will get worse and said more Government funding is needed.
Mr Daly called on the respective ministers to raise the issue at Cabinet and highlight the risk of more nursing homes facing closure.
The main reason for the spate of closures was the failure to increase funding to private nursing homes under the Fair Deal scheme, he added.
He said the closure of these homes - mostly in rural areas - would have a serious knock-on effect on hospitals as there will not be enough beds to discharge older people to.
Mr Daly added that a range of homes are needed to support an ageing population.
Responding, the Department of Health said the Government was "conscious of the financial challenges faced by the sector, particularly in terms of inflationary cost increases".
It said Minister of State for Mental Health and Older People Mary Butler recognises that cost pressures often disproportionately affect smaller nursing homes.
The department said substantial supports to the sector included over €144 million under the Temporary Assistance Payment Scheme.
€100 million was allocated to support community-based service providers in the light of energy and heating costs.
Read more: 'You can't stay open if you can't pay your bills'
Providers of long-term residential care who participate in the Nursing Home Support Scheme can also avail of funding under a scheme being finalised in the coming days.
The statement said the role of both large and small nursing homes was recognised as the average size of new homes has increased to over 100 beds in urban areas.
"Minister Butler is aware that there is a diminished presence across the country of nursing homes with less than 20 beds. In the context of the on-going improvement of older persons services in Ireland, the issue of nursing home size may need to be considered."
Speaking on the same programme, Chief Clinical Officer at the Health Service Executive Colm Henry said there is investment in community intervention as well as frailty intervention teams to support older people in the community.
He said 30 hubs are now established nationwide and they are the "building blocks" to allow people to stay at home for as long as possible.
Additional reporting Carole Coleman
