Hundreds of nursing home beds in West Sussex are being taken up by pensioners from outside the county.
West Sussex County Council will now have to find a further £1.4 million to ensure people who live in the area get a bed.
A report has revealed a significant number of care home places in the county have been purchased by neighbouring councils and London boroughs.
A recent study found 459 nursing home residents in the county were funded by other local authorities, who paid higher rates than West Sussex.
The county council is planning to up its contribution to nursing fees to £370 per person in the south of West Sussex and £390 in the north.
The extra cost is estimated at £1.4 million.
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