Bank of Ireland’s head of Healthcare Sector Gráinne Mahon Henson highlights major opportunities in disability services, homecare, nursing homes and community healthcare.
Ireland’s healthcare sector remained resilient during the first half of 2026, with strong demographic demand, continued Government investment and growing private sector activity supporting expansion across residential care, disability services, pharmacy, homecare and private hospitals.
According to Bank of Ireland’s Healthcare Sector H1 2026 Insights and H2 2026 Outlook report, population ageing, rising prevalence of chronic disease and increasing care complexity continue to drive demand across the healthcare system.
“The requirement for an additional 2,197 residential disability places highlights the scale of future investment opportunities within social care infrastructure”
Nursing home occupancy remained close to capacity, disability services expanded, homecare provision reached record levels and community pharmacy continued to play a growing role in frontline healthcare delivery.
Gráinne Mahon Henson, Head of Health Sector at Bank of Ireland, said the sector remains supported by strong long-term fundamentals.
“The outlook for Ireland’s healthcare sector remains positive, supported by favourable demographics and continued investment across residential care, disability services, pharmacy, homecare, primary care and private hospitals,” said Mahon Henson.
Nursing homes face capacity pressures
Demand for residential care remains exceptionally strong, with average occupancy reaching 94.9%. Providers are caring for residents with increasingly complex physical and clinical needs, while staff costs have risen to 60.9% of revenue and average care hours have increased to 3.85 hours per resident per day.
Although Fair Deal rates increased to approximately €1,299 per resident per week, labour, regulatory and operating cost inflation continue to place pressure on profitability.
Capacity remains constrained. National nursing home bed stock declined by 116 beds during the last 12 months, while approximately 605 additional beds are planned. The ESRI estimates that 1,039 nursing home beds will be required annually to meet future demand.
Investment activity remains strong, with premium modern facilities attracting EBITDA multiples of 12x to 13x, reflecting investor confidence in the sector’s long-term prospects.
Disability services present significant opportunity
Disability services continue to experience sustained growth, supported by increased Government investment and rising demand. The report notes that 38,288 adults accessed HSE-funded disability services during the latest reporting period, representing annual growth of approximately 10%.
Government funding for disability services reached €3.9 billion in 2026, including €2.2 billion allocated to residential services. Around 90 providers currently operate 8,911 residential disability placements nationwide.
However, future demand highlights a substantial capacity gap. Current estimates indicate a requirement for an additional 2,197 residential disability places, alongside expanded day-service, respite and home-support capacity.
Mahon Henson said: “The requirement for an additional 2,197 residential disability places highlights the scale of future investment opportunities within social care infrastructure.”
Homecare demand accelerates
Homecare is becoming an increasingly important element of healthcare delivery as policymakers focus on supporting independent living and care closer to home. The report found that 26.7 million hours of home support were delivered to approximately 60,100 people, while independent providers delivered 68% of total home-support hours nationally.
Demand continues to outstrip supply, with approximately 5,600 people remaining on waiting lists despite record investment in the sector.
Long-term growth prospects remain strong. The ESRI projects that demand for home-support services could increase by up to 91% by 2040, while Ireland’s population aged over 65 is expected to double by 2050.
“Demand is expected to remain strong as Ireland’s population continues to age and healthcare increasingly shifts towards community-based and home-based models of care. Home care is expected to become a more significant component of healthcare delivery, with demand projected to increase by up to 91% by 2040,” Mahon Henson said.
Community pharmacy expands primary care role
Community pharmacy continues to evolve following implementation of the Community Pharmacy Agreement and the expansion of pharmacists’ clinical responsibilities through the Common Conditions Service.
The report found pharmaceutical sales increased by 3.9% during the first quarter of 2026, while prescription medicine values rose by 9.5% and prescription volumes increased by 5%.
Mergers and acquisitions activity also remains active, with an estimated 98 pharmacy transactions completed between 2023 and 2025.
Investment in technology and private healthcare continues
Private hospitals continue investing in diagnostics, operating theatres, specialist services and outpatient care as demand for elective procedures remains strong. Increasing private health insurance membership and ongoing public waiting-list pressures are supporting activity levels.
The report highlights growing investment in artificial intelligence and digital transformation across healthcare. Providers are continuing to invest in electronic health records, remote monitoring, digital prescribing and automation technologies, while Ireland’s AI for Care Strategy 2026-2030 provides a framework for future adoption.
Looking ahead, Bank of Ireland expects continued consolidation and investment across healthcare services.
“Operators with modern infrastructure, strong governance frameworks and the financial capacity to invest are expected to be best positioned to capitalise on future growth opportunities,” said Mahon Henson. “Digital health technologies, artificial intelligence and integrated care models are also expected to become increasingly embedded within healthcare delivery.”
The report concludes that healthcare remains one of Ireland’s strongest long-term growth sectors, supported by demographic trends, increasing demand for care services and continued investment across the healthcare ecosystem.
Read the full report: 
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