Age Action Ireland has said that few can afford the high cost of nursing homes and that Government subsidies are inadequate.
Amid the crisis in accident and emergency departments, Age Action Ireland said yesterday although individuals could qualify for subvention payments of up to €680 a week, the reality was that only "a very small minority" were receiving this level of payment.
Mr Paul Murray, head of communications at Age Action Ireland, said that with private nursing homes costing up to €1,000 a week, very few could afford to make up the difference between the grant they might get and the cost of a nursing home bed.
"While the Government is spending over €115 million on subsidies, it is quite clearly grossly inadequate," he said.
His comments came amid continuing concerns that up to 400 mainly elderly people are occupying acute hospital beds in the eastern region because they have nowhere to be discharged to.
If they were moved to available nursing home beds, it would cost the State a fraction of what it was costing to keep them in hospital beds.