Expanding range of patient care options driving change in Irish healthcare sector

• Demand for nursing home services continues to rise due to ageing population
• Increasing day care and home care options providing patients with more choice

The Irish healthcare sector, shaped by an ever-growing demand for a wide range of patient services, is undergoing a significant transformation according to a new Bank of Ireland report.

With an ageing population (the number of over-85 olds has doubled over the past two decades), and rising levels of chronic illness, demand for nursing home beds continues to rise. 2025 has seen much needed additional capacity come on stream, with the opening of two new nursing homes in Kilkenny and Wexford. Five more locations are currently under construction in Cavan, Dublin, and Sligo, and when completed these seven sites combined will introduce over 700 new beds into the system.

Challenges remain nonetheless, with another eight sites closing or deregistered this year, leading to the loss of 270 beds. Smaller and older nursing homes, more often situated in rural areas, continue to face operational challenges in terms of staffing levels and property compliance. Impacted operators suffer from a poor room mix and limited economies of scale, preventing them from attracting and hiring more staff and upgrading their facilities.

Despite the upheavals being felt in the nursing home sector a notable shift is taking place towards establishing a more joined-up approach to the provision of numerous services. These include a wider mix of home supports, day care, and residential services that better meet the diverse needs of individuals and families.

Day care options in particular are being viewed as a growth area for private operators, offering families more flexibility in terms of care provision, and easing pressures on residential capacity. 300-day care centres nationwide serve more than 14,000 patients each week, with the HSE operating most of these locations. However private operators are now establishing day care services in tandem with their residential offering, a development that looks likely to continue in the years ahead.

Gráinne Henson, Head of Healthcare Sector at Bank of Ireland, commented: “Demand for day care services is projected to grow by over 90% by 2040, highlighting the scale of the challenge at hand, but Bank of Ireland is well positioned to continue providing funding for healthcare operators looking to expand. Investment and consolidation plans continue, with modernisation programmes underway, whilst innovations in care provision indicate a sustainable future for both those currently in need of care, and also for people with future care needs.”