Investments in health and social care property are protected by social security refinancing regulations. The statutory nursing care insurance funds largely cover nursing costs. The statutory nursing care insurance funds largely cover nursing costs.
Residents usually pay the investment costs used to refinance the lease and the maintenance works that must be carried out by the facility operator. If a resident cannot make this payment, the social welfare authority (local government) covers their contribution as a direct subsidy (“Subjektförderung”). In this case, the facility operator and the social welfare authority enter into a compensation agreement.
This system guarantees that the operator receives most of the income required to refinance the lease and secures investments in health and social care property.