Care Homes: At the Crossroads of Healthcare and Facility Management
As Europe’s population continues to age, the demand for high-quality care homes is becoming more critical than ever. By 2030, 1 in 4 people in many European countries will be over the age of 60, accelerating the need for long-term care services. This demographic shift makes innovation and efficiency in elderly care facility management increasingly important.
In Europe, over 56,000 care homes are currently operational, with Germany, the UK, and France leading the numbers. These facilities collectively manage an average area of 8,000 square meters—an expansive space where healthcare delivery and facility management must work together seamlessly. However, running elderly care facilities is not just about medical care; it’s about creating safe, comfortable, and accessible living spaces for residents. Achieving this balance requires a strategic and modern approach to both healthcare and facility management.
This article explores the challenges facing care homes, the impact of demographic changes, and how technology is shaping the future of care facilities.
The Growing Demand for Care Homes: Demographic Insights and Projections
The ageing population is reshaping healthcare needs. According to INSEE, France’s national statistics institute, the proportion of people over 65 is set to rise sharply, with those requiring long-term care expected to surpass 2 million by 2040. This increase is mirrored across Europe, necessitating more care homes and innovative management solutions.
An ageing population also brings higher rates of chronic illnesses and mobility issues. Approximately 30% of individuals over 65 live with chronic diseases requiring ongoing care. This makes it essential for care homes to adopt advanced healthcare solutions and modernize their infrastructure to meet these needs effectively.
Key Challenges in Managing Elderly Care Facilities
Managing a care home presents a unique set of challenges that require careful attention and innovative solutions. As the demand for high-quality care increases, facility managers must adapt to a rapidly changing landscape to maintain efficient operations while ensuring the well-being of residents.
Navigating stricter regulations
Long-term care facilities are subject to strict and evolving regulations. Standards for hygiene, safety, and staff-to-resident ratios are increasingly stringent. Compliance often requires significant investment, making it difficult to maintain high-quality care without overspending.
Ensuring safety and accessibility
Safety and accessibility are fundamental but can be challenging to balance with operational costs. Many facilities rely on outdated infrastructure that wasn’t designed for modern requirements. Renovations are necessary to ensure that safety features—such as ramps, handrails, and emergency systems—are in place, while maintaining resident comfort.
Managing ageing infrastructure
Many care homes were built decades ago and struggle to meet current demands. Aging buildings often lack energy efficiency, adequate space, or advanced medical facilities. Modernizing these spaces is essential for improving both care quality and operational efficiency.
Workforce shortages
Recruiting and retaining skilled staff is a growing challenge. High turnover rates among nurses and caregivers exacerbate the problem, leaving gaps in care. Offering proper training, incentives, and good working conditions is critical for maintaining high service standards.
Rising operational costs
Care homes face increasing financial pressures, from higher healthcare costs to facility upgrades and staffing needs. Finding ways to optimize budgets while ensuring exceptional care is an ongoing challenge for facility managers.
Although these challenges are significant, they also present an opportunity for innovation, with technology emerging as a powerful tool for care homes to address these operational hurdles.
Understanding the Financial Landscape: Cost Breakdown of Care Homes
Operating a care home involves balancing several financial considerations, with the largest portion of costs often dedicated to staff. Understanding these cost dynamics is critical for decision-makers who want to optimize their budgets while maintaining high standards of care.
Here is a breakdown of how the typical costs are distributed in a care home:
| Category | Indicative % |
|---|---|
| Salaries (healthcare, catering, maintenance, and admin) | 60% - 70% |
| Food, furniture, materials, utilities | 15% - 20% |
| Real estate and project works | 10% - 15% |
| Medical equipment | 5% - 10% |
| Other costs | 2% - 5% |
Source: cnsa.fr
Salaries breakdown
Salaries account for the majority of a care home's expenses. Here's how the 60-70% is typically distributed across various roles:
- Nursing assistants and healthcare support workers: ~ 35% to 40%
- Nurses: ~ 10% to 15%
- Coordinating physician: ~ 4% to 5%
- Physiotherapists, psychologists, and other specialists: ~ 6% to 10%
- Cooks and assistant cooks: ~ 7% to 8%
- Cleaning staff and hospital service agents (ASH): ~ 8% to 10%
- Management (director and deputies): ~ 6% to 7%
- Administration (secretariat, accounting, HR): ~ 4% to 8%
Understanding the cost breakdown of care homes is essential for managers to make informed decisions that optimize budgets while maintaining high standards of care. With rising operational costs, the adoption of digital technologies becomes a key solution to improving financial efficiency without compromising service quality.
How Digital Technology is Revolutionizing Elderly Care Facilities Management
Technology is transforming care homes, offering innovative solutions to long-standing challenges. Here are four key ways digital technology is revolutionizing the sector:
Real-time monitoring with IoT
Internet of Things (IoT) devices enable elderly care facilities to monitor residents’ health in real-time. Sensors can track vital signs such as heart rate and blood pressure, and detect falls instantly, ensuring a rapid response. This boosts safety while giving families peace of mind.
Collaborative task management
Centralized systems powered by digital technology help staff manage medical supplies, schedule maintenance, track services, and monitor infrastructure. This streamlines operations, reduces waste, and allows caregivers to focus more on patient/resident care.
Assistive technologies for caregivers
Devices like smart lifting systems and automated equipment reduce physical strain on caregivers, improving their well-being and efficiency. These technologies also enhance safety when moving or assisting residents.
Virtual reality (VR) for enrichment and therapy
Virtual reality is opening new opportunities for mental stimulation and therapy. Residents can take virtual trips, enjoy immersive activities, and engage socially. These experiences benefit individuals with cognitive decline, offering relaxation and joy.
Addressing Operational Challenges in Care Home Management: A Collaborative Approach
To navigate these challenges effectively, healthcare teams and facility managers must adopt a unified, collaborative approach that leverages digital solutions.
Work collaboration can include the use of digital tools to streamline communication across services/branches, optimize workflows, and ensure that both resident care and facility maintenance are managed in real-time. Additionally, leveraging predictive analytics can help anticipate staffing and equipment needs, while investing in building upgrades can reduce costs and improve energy efficiency.
By fostering open communication and cross-training between healthcare providers and facility staff, care homes can streamline workflows, reduce administrative task time by 50%, and allocate resources more effectively. In addition, effective digital tools help make the workday easier for employees, which is key for staff well-being and retention.
Conclusion: Embracing Digitalization for a Better Future in Care Homes
The care home sector must evolve to meet the growing needs of residents and healthcare professionals, with digitalization at the forefront of this transformation. By streamlining workflows and enhancing resident safety, digital tools pave the way for smarter, more efficient operations that elevate both care quality and operational effectiveness.
Urbest is committed to supporting care homes in their digital transformation journey. Through its collaborative job-tracking platform, Urbest enables organizations to seamlessly capture, organize, track, and act on tasks across all levels—from issuers to managers and workers. By adopting these digital solutions, elderly care facilities can foster greater independence, dignity, and well-being among residents while empowering staff with the tools they need to excel in their roles.
The future of care homes depends on embracing innovation and digitalization to create environments that are more responsive, efficient, and human-centered. Ready to take the next step?
➡️ Discover how Urbest can help guide your care home through its digital transformation journey: Urbest healthcare case study