Care homes in Denmark

1. Which laws apply to opening care homes?

  • Act 2017-10-26 no. 1162 on nursing homes
  • Act 2020-08-28 nr. 1287 on social service

2. Is the care home operator required to have a presence in the local jurisdiction?

It is possible for both national and international operators  to build and operate care homes, however it presupposes that the company has a CVR (Central Business Registration) number, which means that the operator must be registered at the Danish Business Authority. The operator may build, own and operate the care homes or an investor may build the care homes and then rent out the homes to an operator.

There is no requirement that care homes must be operated in a specific business form. Therefore, both companies, foundations and individuals can apply to be certified as care home suppliers. Only care home suppliers which are certified by the Danish Health Authority that can operate care homes.

4. How are the governing bodies of the care home regulated? 

Depending on the legal form, care homes can have a director, management board, and supervisory board in accordance with the applicable regulations. Private care homes are incorporated as social welfare institutions and shall therefore comply with the same requirements as public care homes, which among other things implies requirements about supervision in accordance with the Social Services Act.

5. Is a concession or approval by any regulatory authority required to open a care home?

Yes. It is only care home suppliers which are certified by the Danish Health Authority that can operate care homes. A certification must include personal care, practical aid and food service. In order to obtain certification, the applicant must meet basic standards regarding economy, staff-related matters and in which way sound performance of the service will take place.

6. Is a care home restricted in the performance of activities on the local market?

The private care homes must at any time meet the legal requirements. In addition they may offer supplementary services to the residents. Since care home buildings are private tenanted buildings consisting of care homes and service areas for persons with comprehensive need for service and care, they are beyond the local housing supply. Therefore, the owner can – with respect of a rental agreement, if any, dispose over the property by sale, mortgaging, rental or demolition. However, this does not apply if the building is owned and operated by the same legal entity since Act 2015-08-31 no. 1065 on the Operation and Disposal of Nursing Homes lay down rules for sale and conversion to other purposes than care homes.

7. Are there any restrictions on how care homes may use their profits?

Profits from private care homes are not submitted to any restrictions and may for example be used on maintaining the performance of the care home and optional development of new business activities including the distribution of profits to the owners. However, this does not apply if the owner of the building and the operator is the same or if the care homes is established with public funding. In these cases all profits must solely be allocated to re-investing in maintenance of their services and further development of the nursery home.

8. Does the government provide any type of subsidy?

Care homes can be established with or without public funding. It is possible to obtain subsidy (contribution subsidy) according to section 11 a of the Act on Nursing Homes, if the homes are established in new buildings or by thorough rebuilding of existing properties, which have not been built with public subsidies. It is a condition to obtain subsidy that the care home supplier owns the buildings from which the care home is operated. Subsidy can be granted to no more than 225 buildings annually which are distributed according to a first-come, first-served policy. Thus, there is no upper limit for how many care homes can be established without public subsidies.

9. Is there a supervisory authority in relation to the activities of the care home?

Yes. It is the local municipality which must supervise both private and public care homes and ensure that the supplier delivers the services in accordance with the municipality’s decision. As part of the supervision obligation the local authority must make at least one unannounced supervisory visit in every care home each year to ensure that the services generally supplied in the care home is in accordance with the care home supplier´s certification.

10. What is the number of inhabitants?

5.818.553 (source: World Bank)

11. What is the number of inhabitants older than 65 (in %)?

1.161.689 (source: World Bank)

12. What is the number of care homes?

935 (source: ”The Health Data Board” publication July 2020: ”Nursing home addresses and nursing home residents”).

13. Is there a waiting list?

There is no reliable statistic because Denmark has both private and public care homes and the waiting time varies greatly depending on type of care home.

14. What institutions regulate and monitor the health and social care services?

N/A

Bettina Erringsø
Christian Schwarz-Hansen