Increased pressure to raise staff wages has also contributed to the rise.

As a result of care home reforms which mean local governments are now responsible for covering a proportion of fees, the demand for places has grown, leading to a shortage of demand and price rises in this way as well.

Käru Südamekodu home in Järva County increased its fees by 10 percent back in the spring, bringing the average cost of general care to €1,250 per year, plus additional charges for specialized services.

"Input costs have seen significant rises lately, and the same goes for salaries," said Heili Burmeister, the facility's director.

According to Burmeister, the higher fees haven't deterred people from seeking care at the nursing home; if anything, demand for higher-end services has increased, she said.

"The care reform has been beneficial to people. We have seen a growing need for nursing home places, and our waiting lists have become significantly longer," Burmeister told "Aktuaalne kaamera".

Last September Estonia's largest state-run nursing home, in Koeru was transferred to a limited company owned jointly by Järva Rural Municipality and Paide Municipality.

The state was required to pay €360,000 in income tax due on the transfer of the foundation's assets. This, along with a lengthy period without fee hikes and also minimal investment, was behind a 34 percent rate increase for Koeru's clients at the beginning of this year.

Rünno Lass, director of Koeru nursing home said that the fees had normalized via market correction.

Lass told "Aktuaalne kaamera": "Yes, the prices have gone up, but they have returned to a normal level. Continuing with the previous rates would have inevitably impacted on occupancy rates."

Another care home, the Tammiste home, owned by the City of Pärnu, says it plans to raise its fees in January, to avoid the need for additional municipal subsidies.

According to director Liina Männiaru, last year's price hikw was largely driven by the care home reforms.

"There was significant pressure to up the wages of care workers. There's nothing that can be done about that; this has an impact today. Nursing homes are still competing with the healthcare sector for care workers, where funding for services is different," Männiaru went on.

Meanwhile, Türi Rural Municipality raised the fees for the Väätsa old people's home by €70 on June 1, with current costs ranging from €1,270 to €1,420, depending on the level of care required.

"We also increased the care component by the same sum, meaning the sum paid by the local government on behalf of the client. The amount clients have to pay has not changed significantly," Tiia Mettus, the director of the facility, added.

The care home reform requires Estonia's 79 municipalities to organize and fund such facilities within their territories, as upheld by the Supreme Court following an appeal from three municipalities.

Municipalities are permitted to seek state support for this purpose.

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