One care home in Scotland is closing every week on average, industry leaders have warned.
Scottish Care, which represents private operators, said the industry was in an “incredibly difficult” position due to funding and staffing challenges.
And smaller, family-run homes in rural areas are the most vulnerable to closure, the body added.
A new funding deal between care homes and council umbrella body Cosla has been agreed.
But care homes argue the 6% uplift does not go far enough to cover increased energy and recruitment costs.
Speaking to the BBC Scotland Sunday Show, Karen Hedge, deputy chief executive of Scottish Care, said the deal was the best Cosla could realistically offer but still “doesn’t cut it”.
She said: “It is incredibly difficult right now, I’m having phone calls from our members in tears who are having to close what has been a family business for them for many years.
“What we are seeing as a result of that is the impact on the residents and their loved ones, who in some places are having to drive up to two hours to go to another care home in a different community.”
As well as more homes closing, Ms Hedge said care at home packages were also being impacted by private operators not being able to meet the increased costs in what she described as another example of “the way social care is a Cinderella service compared to the NHS”.
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Adam Stachura, head of policy and communications at Age Scotland, said the care home closure figures “should be setting alarm bells ringing across the country”.
He added: “Social care is critical to the lives of hundreds of thousands of people – it is incredibly worrying and I actually don’t understand how it will get better.
“The vast majority of care homes are provided by private organisations, there are very few council-run care homes any more.
“So one closing every week is devastating because where on earth do these people go?”
Deal agreed
The National Care Home Contract (NCHC) was set up about 15 years ago in response to disputes over rates between care homes, local and central government.
Those fees are now set through annual negotiation between Scottish Care and Cosla, which represents local authorities.
A 6% uplift has been agreed but some in the industry say this was borne out of sheer desperation for more funding to keep going.
Plans for a new national care service in Scotland, which would see a series of regional care boards set up that would operate in the same way as health boards, have been postponed.
The new service would see Scottish government ministers directly responsible for social care services instead of local councils.
However, uncertainty about the costs involved in setting up and running the new service and the implications for local decision-making remain.
A Scottish government spokesman said: “The national care home rate is not set by the Scottish government and is negotiated by Cosla and Scottish Care.
“We are pleased that Scottish Care members have agreed to accept the 6% uplift offer from Cosla to agree the national care home contract.”
