Nursing Homes Ireland is calling on the Taoiseach to urgently help private and voluntary nursing homes, saying the sector is in a "crisis".
So far this year, 17 nursing homes have closed and more than 480 people have lost their homes as a result.
The NHI has warned the government that more closures are inevitable if the state does not intervene.
In a letter to Taoiseach Micheál Martin, the organisation said that the sector is in a state of distress and is facing "extreme challenges".
Chief Executive Officer of the NHI Tadhg Daly is asking the state to reduce residential rates to be more in line with the Fair Deal scheme, which offers financial assistance to those living in nursing homes.
"We're calling on the government to inject a stabilisation fund for the sector to ensure that we can stem the current tide of closures and ensure a sustainable sector for the medium term", he told Newstalk.
"And then to undertake the long-awaited view of the pricing mechanism of Fair Deal that has been recommended by numerous government reports over many years."
Gap in cost of care
"The independent report would suggest that the cost of care has risen by about 35% in the last number of years, whereas the Fair Deal rate has risen by about 11%", Mr Daly explained.
"So there's a significant gap there and that's exacerbating an already difficult situation leading to closures of nursing homes, leading to residents ultimately losing their homes."
The Health Information and Quality Authority (HIQA) report emphasised the need to properly plan for how older people should receive care into the future.
It is repeating its call for introduction of a sustainable funding model which is commensurate with the care needs of nursing home residents.
Main image shows the hand of a younger woman holds on to the hands of a senior resident in a nursing home. Picture by: Jens Kalaene/Alamy