A report being published today will highlight a fall in the number of nursing homes across the country.
The number of homes has dropped 4% in the last five years, meaning there is now one private nursing home bed for every 20.23 people over the age of 65.
Industry group Nursing Homes Ireland is voicing concern at the trend, considering Ireland's aging population, and CEO Tadhg Daly said something needs to be done.
"What you have at the moment through the Fair Deal scheme is a monopoly of purchasing through the state, and that's driving down the rate it's paying to nursing home providers," he said.
"On the one hand, you have the demographics pointing to a growing demand, and a fairly strong fundamentals, on the other hand you have the state failing to recognised the true cost of care.
"This is acting as a strong disincentive to the investment required."