Against a background of rapid growth in the number of private nursing home beds, this report draws together theoretical insights and factual material on a range of relevant issues concerning the future of nursing homes in Ireland. It sets out the factors likely to influence the future demand for and provision of nursing homes in Ireland. The study deals with the demographic, social, economic and policy variables which should be taken into consideration. The study bears out the importance of policy in determining the future direction and role of nursing homes. Financing arrangements and incentive structures play a critical role in the allocation of resources between home and institutional settings.