Why do most nursing homes keep losing money?

The main reason for the loss of most nursing homes is the high vacancy rate. Veterans in the pension industry admit that 75% of the occupancy rate can be guaranteed. On the other hand, at present, the profit models of most high-end pension institutions are similar and simple.

Because the combination of medical care and nursing care is not in place, it is difficult to make a profit, which is a "common disease" of private pension institutions in China. Inadequate and inaccessible medical services will make middle and high-end elderly consumers "hesitate to hold money". People in the industry generally believe that more than 80% of private pension institutions in China are at a loss.

The average occupancy rate reaches 70% income balance, 80% can be profitable, and 100% can be profitable. Tu, a professor at Beijing Vocational College of Social Management and the Training Center of the Ministry of Civil Affairs, told Caijing that institutions with fewer than 50 beds are difficult to operate, and 50 to 200 beds are more suitable. "At present, the average occupancy rate of private pension institutions in China is over 40%, less than 50%, and 80% of private institutions are losing money."

High-quality and comprehensive pension services, especially the combination of medical care and nursing care, are the key to the profitability of pension institutions. Delongrui Yiyuan Garden built its own infirmary and settled medical insurance, but it is still difficult to break through the dilemma of low occupancy rate. In Tu Qilei's view, it is a disadvantage to be too far away from quality medical resources. "Although it is located in the suburbs of Beijing, as far as the traffic conditions in Beijing are concerned, in the event of an emergency, you can't get to the hospital in the city for an hour or two."