The report says the demand for senior care far exceeds the current available supply. At the end of 2014, there were 212 million people over the age of 60 in China. Over 40 million of them were disabled. For every thousand people over the age of 60, there were 26 nursing home beds available in China. That is compared to the 50 to 70 beds available for every thousand people over the age of 65 in developed countries.

　　Secondly, the report finds many nursing homes are not strategically positioned to meet the demands of most seniors.

　　中国高级护理市场面临挑战

　　Wu Yushao, Director of China Research Center on Aging explains:

　　"Most current nursing homes are positioned either in the very high-end or very low-end of the service spectrum, failing to meet the demands of those in the middle, where the need for affordable and proper care is most significant."

　　The research surveyed around 300 nursing homes in 12 major Chinese cities. The average monthly fees for one person amounted to 2,134 yuan, or about 343 US dollars. However, China's average monthly pension income for retired persons currently stands at 2,061 yuan, or about 332 US dollars, per person. On the other hand, low profit margins and long term investments have also caused half of the surveyed nursing homes to only break even, while one third of them are operating at a loss.

　　Another issue is the service capabilities of the current facilities. Half of the current nursing homes do not offer any medical or health related services. Beyond meeting clients' physical needs, many facilities are not capable of ensuring their emotional wellbeing.

　　Wang Lili, deputy supervisor of the research, further elaborates:

　　"Most nursing homes are lacking in professionals who can offer emotional comfort to the elderly. Many care givers are between the ages of 40 to 50, with little education. They are more focused on how to physically care for their clients, which presents the issues of professional awareness and capability."

　　Experts say China urgently needs a national standard to assess and categorize the services offered by nursing homes, so that older people, based on their individual needs, can receive the appropriate levels of services. The government can then increase its support to these facilities based on their specific needs.

　　Looking ahead, Wu Yushao, the director of China Research Center on Aging, predicts that private enterprises will become the major players in China's senior care sector, offering smaller facilities, more specific and more community-based services.