Finland needs hundreds of service centres for the elderly

The transformation of Finland’s care system for the elderly is estimated to create a EUR 3 billion market for the construction of new service centres.

Finland’s Ministry of Social Affairs and Health is recommending that Finnish municipalities will no longer provide long-term care for the elderly in health centre wards and old people’s homes. The objective of the ministry is to ensure that people over 75 will be able to live their final years in the same location, instead of being moved around different institutions.

The dismantling of the current care system will create a substantial market for construction companies building new service centres for the elderly, as well as companies providing care services. The closure of thousands of bed spaces in institutions will require the construction of hundreds of new service centres to cater for the needs of Finland’s elderly population. The number of elderly people is also increasing rapidly in Finland.

Ulla-Maija Laiho, Development Director at the Ministry of Social Affairs and Health, estimates that about EUR 3 billion will be spent on the construction of the new service centres. As Finnish municipalities lack the finance to undertake the work, private companies are becoming more and more interested in the construction and maintenance of the care homes. Subsidies, covering a maximum of half the construction costs, can be applied for from the Housing Finance and Development Centre of Finland (ARA).

Source: Helsingin Sanomat