Danish municipalities tighten oversight to combat fraud in care homes

Danish municipalities are increasing controls over private care homes following a rise in welfare fraud cases, reports national broadcaster DR. A special task force in Mariagerfjord Municipality is now monitoring financial irregularities, while police have offered to assist with investigations into suspected fraud.

A report from Denmark’s Anti-Money Laundering Secretariat shows a sharp increase in welfare fraud cases at privately owned care facilities. In 2023, 60 cases were reported to municipalities—by 2024, that number exceeded 200.

Susanne Nielsen, director of children, youth, and labor market services in Mariagerfjord Municipality, confirmed they have established an internal working group to investigate fraud allegations. “If we receive a report of potential fraud, we conduct a thorough review and decide whether to terminate cooperation with the institution in question,” she said. “In some cases, we may also report the matter to the police.”

Media investigations in recent years have uncovered cases where care home owners paid excessive salaries to themselves and family members or hired connected firms at inflated rates. Mads Roke Clausen, director of the National Association for Social Services (LOS), called the fraud a threat to the entire sector.

“Our industry is under attack by criminals, and we must stop this as quickly as possible,” Clausen said. “It affects some of society’s most vulnerable people.” He noted that LOS expelled five members last year for ethical violations and alerts authorities when excluding facilities.

Some municipalities, like Tønder, are reducing reliance on private providers by expanding public care home capacity. Bjarne Lund Henneberg (SF), chair of Tønder’s social committee, said, “It’s an advantage to have control over what we offer young people, rather than placing them in facilities where the owners prioritize profit over care.”

In 2024, Danish municipalities spent 7.5 billion kroner on private adult care homes, according to the Ministry of Social Affairs and Housing. A pre-election agreement to strengthen oversight of social services has yet to be implemented, but LOS hopes the new social minister will prioritize the reforms.