Nursing Home Sector Faces Critical Challenges and Safety Concerns in 2025
Recent Tragedies Highlight Safety Concerns
The nursing home sector has been thrust into the spotlight following a devastating explosion at a Pennsylvania nursing home in December 2025 that killed two women—one resident and one employee—and injured 20 others. The cause is preliminarily believed to be a natural gas leak, underscoring critical safety vulnerabilities in these facilities that house some of society’s most vulnerable populations.
This tragic incident serves as a stark reminder of the importance of nursing home safety protocols and infrastructure maintenance. Currently, there are more than 400,000 people living in care homes in the United Kingdom, around three times the number of hospital beds, making the safety and quality of these facilities paramount to public health.
Major Policy Shifts in Nursing Home Regulation
The nursing home sector is experiencing significant regulatory upheaval. In December 2025, the U.S. Department of Health and Human Services repealed provisions of the Minimum Staffing Standards for Long-Term Care Facilities. The 2024 rule had established requirements that nursing homes provide residents with a minimum total of 3.48 hours of nursing care per day, including at least 0.55 hours from a registered nurse and 2.45 hours from a nurse aide.
HHS stated the final rule imposed by the Biden Administration disproportionately burdened facilities, especially those serving rural and Tribal communities, and jeopardised patient access to care. However, critics worry this deregulation could compromise care quality at facilities already struggling with workforce shortages.
Persistent Workforce and Financial Pressures
The adult social care sector faces persistent workforce shortages, experiencing a severe shortage of skilled professionals, including care workers, nurses, and social workers. Operational pressures, including a shortage of workers and a tough economic environment with rising inflation and high interest rates, led to nursing home closures in recent years.
In the United Kingdom, NHS fees for care homes to fund nursing services will rise by 7.7% in 2025-26, taking the standard rate from £235.88 to £254.06 per week from 1 April 2025. Despite this increase, providers face rising costs from increased employer national insurance contributions—expected to cost £940m in 2025-26.
Looking Ahead: Technology and Innovation
Top providers to watch in 2025 are those chains planning to tap into scale for efficiencies, as well as those leveraging technology and value-based care to thrive. The sector anticipates significant transformation through the integration of artificial intelligence, which has the potential to revolutionise health outcome predictions by analysing health data to detect patterns and risks.
As the sector navigates these challenges, the focus remains on balancing financial sustainability with quality care delivery. Ongoing pressures in England’s health and social care system particularly affect older adults, people with dementia, and those with complex health conditions who often find themselves caught between hospital and home. The coming years will prove critical in determining whether nursing homes can adapt to meet the needs of an ageing population while maintaining safety and care standards.