the nursing home market | France

1.1 Definition of the market and the scope of the study

The term retirement home covers several types of medico-social establishments offering various housing solutions for the elderly A retirement home can be public or private, medicalized or not, specialized or not, etc.

Medicalized retirement homes are divided into two main categories

• The EHPAD (Residential establishments for dependent elderly people) which target dependent elderly people for whom permanent supervision by a medical team is necessary.

• The USLDs (Long Term Care Unit) with permanent medical staff and reinforced medical equipment to ensure the total and constant care of seniors.

In Europe, the ageing of the population is prompting European countries to invest in the construction of new medical residences for senior citizens, as is the case in Germany, which has invested 10.860 billion euros in this sector

As EHPADs are in the vast majority, this study will focus mainly on this category of medicalised retirement homes. In 2019, France had 7,519 EHPADs, which represented 70% of the accommodation capacity dedicated to the elderly. The USLDs, on the other hand, represented less than 5.51% of accommodation capacity.

In 2018, EHPADs can be public (44% of establishments), private commercial (25%) or non-profit (31%). In 2019, 611,673 beds are offered in EHPAD and the average occupancy rate is 97%

In France, the market for nursing homes is growing strongly, driven by the aging population and the increased dependency of the elderly. This increase is expected to accelerate further as the post-war "baby boom" generation reaches 3ᵉ age and life expectancy continues to rise

However, since supply is lower than demand, the market has been characterized for several years by significant challenges. In particular, the slowdown in creations and the barriers to entry s, the funding gaps and the recruitment difficulties are central issues

For several years, the institutions have also been suffering from a image deficit . The players are therefore focusing on modernising their structures and seeking to improve the quality of life of residents. In addition, the main players in the sector, such as Korian, Orpéa and DomusVi, are diversifying their offer, in particular by reinforcing their home care offer, by taking over the entire operation of nursing homes and by positioning themselves on alternative accommodation offers to nursing homes.