The nursing homes sector in France has undergone significant change in recent years as a result of government reforms aimed at increasing capacity and reducing the burden of elderly care on hospitals.

Since 2010, however, budget constraints have restricted the growth of nursing home capacity and shifted the priority towards homecare for the less dependent and more medicalized facilities in nursing homes to treat the more dependent elderly patients.

Although the French nursing homes sector is now in equilibrium, there will likely be shortages over the longer term. In this scenario, private operators present the cheapest and most expedient solution for the government as it seeks to balance high-quality care with fiscal constraint.

In this Executive Insights, L.E.K. Partners Arnaud Sergent and Serge Hovsepian examine changing market dynamics and explain how private operators are best placed to take advantage of significant opportunities that lie ahead.

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