Nursing Homes, a Call for Reform in a Natixis CIB Report
Monday 11 February 2025
Health is one of the strategic sectors for Natixis Corporate & Investment Banking (Natixis CIB). As nursing homes play a crucial role in caring for individuals with reduced autonomy, this sector has faced a crisis which has triggered a necessary evolution.
An Overview of the Sector
In a full report, Fanny Meindre, PhD, Director Healthcare Research at Natixis CIB, delves into the challenges, stakeholders, and essential changes needed in this sector to achieve economic sustainability while providing the quality care expected to meet the growing demand from an aging population.
Indeed, between 2030 and 2040, France’s residential care homes must prepare for a massive intake of residents, with a projected 58% increase in people aged 85 and over.
An Essential Reform
Following the 2020 crisis, the sector has implemented a restructuring phase to regain a healthy situation. Operators must tackle structural challenges, such as increased operating costs, infrastructure modernization, and a shortage of skilled personnel, all while navigating a highly regulated environment.
This represents over 10 billion euros in investments, in a context where public establishments, which accommodate nearly half of the residents, are currently in deficit, and private operators need to optimise their occupancy rates.
An overhaul of price-setting and funding, along with a modernised governance, is imperative to ensure the long-term future of residential care homes and the quality of care provided to dependent elderly people.