New data shows more than a third of aged care facilities may be forced to close this year due to a lack of funding.
A survey by Aged Care Matters reveals 35 percent of facilities said it's very likely, or likely, they will wind up over the next 12 months.
Rest home leaders around the country said it's clear the sector is at breaking point.
"You're going to see closures happening in the next three months ... if you can't get the staff, then you can't deliver the service at all," Ambridge Rose chief executive Allan Sargeant told Newshub.
"It's in crisis. We've got a definite problem going on. There is an underfunding that has been going on for many, many years and it's just gotten worse with the cost of living."
Those in the sector who were surveyed said if current levels of Government funding continue, operators will be forced to take drastic measures.
Sixty-five percent of respondents, representing over 14,500 aged care beds, said it's likely they'll have to stop or restrict admissions into their aged care facilities over the next year.
"It's sad that it is going to come to this," Sargeant said.
But Enliven general manager Nicola Turner said the alternative option is financially crippling.
"Lots of us are losing millions this year and we can't do that for very long. So at some point our boards will say enough is enough, we're going to have to wind up," Turner told Newshub.
Sargeant has been working in the aged care industry for over 20 years and his job is to help care for people, but he said currently, that's proving difficult.
"We've got a staff member - a clinical lead - who has just resigned in the last week. She's going overseas and we probably won't see her back in New Zealand for a long time,"
He said many aged care nurses are moving to public hospitals or overseas where wages are higher.
"Under the COVID-19 situation, the DHBs were paying $500 a night just to get cover from any nurse who wanted to do a night shift. We just can't compete with that - it's ridiculous,"
A recent report said over 15,000 extra aged care beds are needed in New Zealand before 2030, but in the last 6 months, 500 rooms have been closed off due to underfunding.
"We only get paid when someone occupies the bed. So if we have less people coming in, we don't get paid for that," Sargeant said
"There is a demand - we just can't admit people, because we have no nurses to look after them," Turner added.
Meaning patients will have to move to hospitals or be forced to stay at home.
"It's actually dire, to be honest. We're really, really struggling," Turner said.
"We are in a total crisis now - this cannot go on for very long. If it goes on for too many months, there will be mass closures."
An industry crying out for help, before it's too late.
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