Care home fees being raised again as general price advance continues

Väätsa Nursing Home.
Väätsa Nursing Home. Source: Olev Kenk/ERR

Against a general backdrop of rising prices, care home prices are going up again in the new year as well. Service providers claim that expenditures on everything have gone up, from food to power; wage pressure is pushing up fees as well.

Martin Kukk, supervisory board chair of Südamekodud AS, which operates ten care homes across the country, told ERR that they review the prices of services at the end of each year. Next year's average price increase will be in the range of 10 percent.

Kukk noted that the pressure to increase prices has been significantly higher. "This is still largely due to the fact that heating and electricity prices have increased not 10 percent, but severalfold," he explained. "And our biggest cost component, labor costs — we also need to raise wages by the same amount."

Risti Care Home and Oru Care Home in Lääne-Nigula Municipality will likewise be raising prices in the new year. General care services, which currently cost €850 a month, will be increasing by €150 next year, said care home director Elle Ljubomirov, adding that they decided to raise prices from February 1.

"We can't manage without increasing fees," Ljubomirov acknowledged. "Electricity, heat, food prices have increased exponentially, and medical supplies are getting more expensive as well. Everything is connected to that."

Despite monthly fees hovering in the €900-1,000 range, care homes have no shortage of clients.

Kukk said that occupancy of their chain's total 700 care home beds varies. While they still have some spots available in Harju County, facilities in more rural areas are completely full.

The care homes in Lääne-Nigula Municipality are full as well, Ljubomirov said. "There are 38 spots in Oru and 36 spots in Risti," she said. "People are on waiting lists. All the spots in Risti are full; all the spots in Oru will be shortly."

"There are more spots available in Tallinn and Harju County, where services are a bit more expensive due to higher income levels," Kukk explained. "In rural areas, meanwhile, there are fewer."

As of April 1, 2023, the average monthly pension in Estonia following indexation and an extraordinary pension increase should rise to approximately €654.


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Editor: Aili Vahtla

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