Nursing home costs covered by authorities or insurance in Europe 2020, by country

In 2020, the share of daily nursing home costs that are handled by public authorities or insurances varies greatly from one European country to another. How European countries regulate nursing home costs depends on their public health expense policies. Long-term care is a significant part of a country’s healthcare expenditure. To a certain extent, health costs and medical expenses are financed by local authorities, national or regional health insurance, and national nursing care insurance. In Ireland, 73 percent of the cost per day of a nursing home was borne by the financial support derived from the Fair Deal Scheme. In Czechia, only 15 percent of the daily nursing home costs were supported by health insurance.

The complex landscape of European nursing homes

In 2020, the landscape of nursing homes in Europe was diverse with different shares of homes owned by public or private institutions. During that year, over 80 percent of nursing homes were publicly owned in Norway and Denmark. Within privately owned homes, some were for-profit and others not. For instance, 80 percent of nursing homes were owned by for-profit private companies in the UK, whereas 80 percent of nursing homes were owned by the private non-profit sector in the Netherlands. Therefore, the share of nursing home beds managed by the public or private sector was also very different from one European country to another.

The costs of nursing homes in Europe

In 2019, the average daily cost of a care home could reach over two hundred euros in some European countries and less than 50 euros in others. During that year, the average monthly cost of a care home amounted to three thousand euros in the United Kingdom and Germany. The cost of care homes is expected to increase as the need will escalate in Europe due to its aging population. Nonetheless, European health systems rely significantly on informal care, a potentially risky strategy.