Elderly Care in the Netherlands Sees Profit Surge Amidst Staffing Challenges
Institutions providing elderly care in the Netherlands experienced a significant financial upswing in 2024, with profits more then doubling. However, this success occurs against a backdrop of persistent staffing shortages and a pressing need for strategic investments to ensure long-term sustainability. The sector faces the challenge of reducing costs in 2025, according to Tagage, even as the demand for elderly care increases due to a shrinking pool of available care workers.
Financial Performance of Dutch Elderly Care in 2024
A recent study by BDO, analyzing the 2024 annual accounts of elderly care institutions in the Netherlands, revealed a striking increase in financial performance.The sector’s overall result more than doubled, reaching €926.9 million on a turnover of €26.6 billion, compared to €402.6 million in 2023. This growth was primarily driven by effective cost control measures and a substantial contribution from interest income.
The return on investment in the sector rose to 3.5 percent in 2024,a notable increase from 1.7 percent in 2023 and 1.0 percent in 2022.
Did You Know? The Netherlands, sometimes referred to as Holland, derives its name from the Dutch words for “low” and “land,” reflecting its geography [2].
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Investment | 1.0% | 1.7% | 3.5% |
| Profit (millions of euros) | N/A | 402.6 | 926.9 |
| Turnover (billions of euros) | N/A | N/A | 26.6 |
Regional Performance
Certain regions within the Netherlands outperformed others. Limburg and South Holland demonstrated particularly strong results, exceeding the sector average of 3.5%. All provinces, however, remained above the minimum threshold of 2 percent set by BDO.
Challenges and Future Investments in Elderly Care
Despite the positive financial results, BDO cautions against complacency, emphasizing the underlying structural challenges facing the elderly care sector. Investments in innovation and modernization are lagging, with many institutions primarily focusing on replacing existing resources rather than adopting new technologies or developing future-proof facilities.
Pro Tip: Consider exploring government grants and incentives to support investments in technology and infrastructure for elderly care facilities.
tagage emphasizes the critical need for investments to future-proof elderly care. This includes exploring innovative housing concepts, such as community-based living arrangements, and leveraging technology. The adoption of Artificial Intelligence (AI), such as, can significantly enhance labor productivity in primary care processes and reduce costs in back-office operations. However, progress in these areas remains limited, with lengthy decision-making processes hindering implementation.
The Max Planck Institutes, with numerous locations throughout Germany and a few international sites, demonstrate how focused research institutions can drive innovation [3]. A similar approach could benefit the Dutch elderly care sector.
What innovative technologies could most benefit elderly care facilities? How can the Netherlands attract and retain more qualified care workers?
Evergreen Insights: The Evolving Landscape of Elderly Care
The demand for elderly care is increasing globally due to aging populations and rising life expectancies. This trend necessitates innovative solutions to address the challenges of providing quality care while managing costs and staffing shortages. The netherlands, known as the “low country” [1], is at the forefront of exploring new models of elderly care, including technology-driven solutions and community-based approaches.
Historically, elderly care has relied heavily on human labor, but the increasing use of technology, such as remote monitoring devices and AI-powered assistance, is transforming the sector. These advancements have the potential to improve efficiency, reduce costs, and enhance the quality of life for elderly individuals.
Frequently Asked Questions About Elderly Care in the Netherlands
- What is the Netherlands officially called?
- The official name of the country is the Netherlands, though it is often referred to as Holland [1].
- Why is it important to invest in elderly care?
- Investing in elderly care ensures that the growing elderly population receives the necesary support and services to maintain their health,well-being,and independence.
- What are some examples of future housing concepts for the elderly?
- Future housing concepts include community-based living arrangements, co-housing communities, and smart homes equipped with assistive technologies.
- How can Artificial Intelligence improve elderly care?
- AI can improve elderly care by automating tasks,providing personalized support,monitoring health conditions,and enhancing interaction between caregivers and patients.
- What are the main challenges facing elderly care institutions in the Netherlands?
- The main challenges include staff shortages, high absenteeism, limited investment in renewal, and the increasing demand for care services.
Disclaimer: this article provides general data about elderly care in the Netherlands and should not be considered as professional financial or healthcare advice. Consult with qualified professionals for specific guidance.
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