The financial situation of Dutch organizations in the care of the elderly is “downright alarming”. That writes accounting firm BDO Monday, based on an analysis of annual reports from 2022 of nearly eight hundred healthcare organizations. If the government does not intervene, the problems could become ‘unsustainable’, BDO writes, and the quality of care could suffer considerably.
In addition to loss of quality, bankruptcies of healthcare organizations are also threatening, according to the accountancy firm. The average profit of healthcare organizations halved in 2022 compared to the previous year, from 533 million euros to 262 million euros. The number of elderly care institutions that suffered a loss grew by almost 40 percent last year, from 171 to 238.
BDO points to various causes for the situation. In 2022, for example, almost 375 million euros was spent on temporary workers. That is 20 percent more than the year before. In addition, higher energy costs, growing interest charges, inflation and a shortage of materials caused costs to rise further.
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Return of income
These increased costs are offset by an expected decline in income. For example, the budget for care for the elderly as a whole will be 1.2 percent lower next year, which will fall further to 3 percent in 2026. From 2024, less money will also come in from the Dutch Healthcare Authority, which will reduce the normative housing component by 8 percent. lowers. This means that care organizations receive less money to pay for housing for those in need of care.
According to BDO, the government should implement new measures less quickly, adapt their calculation models to the current situation and discourage constructions such as the hiring of self-employed persons without employees. According to the bureau, such constructions are one of the reasons for the high absenteeism in healthcare.