Fears have been raised that Derbyshire care homes could come under pressure after an authority admitted it was looking at plans to shut one - reports the BBC.
Derby City Council has announced a consultation period over the future of Bramble Brook in Mickleover.
The council said residential care had become less popular in recent years and it had 80 vacancies across the city.
Age Concern said greater emphasis on home care meant many care homes were facing a financial squeeze.
There are about 40 residents and 32 staff at Bramble Brook, which has been selected as it provides no specialist care.
The families of those at Bramble Brook said the idea of being moved away from friends and familiar surroundings was causing distress.
Katy Pugh, chief executive of Age Concern in Derby, said: "I think finances are very tight and many of the new strategies and agendas mean money will have to be redistributed, so it is possible there will be more closures."
She added: "Experience has told us that older people facing this sort of situation suffer greatly.
"They become very anxious and it is more likely their health will suffer and certainly these changes are much harder to cope with at that time of life."
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