In the context of integration of the Lithuanian social service sector into the international social security system of the European Union where relations of market economy are getting more and more stronger, it is important to substantiate the trends and priorities for efficient development of the mentioned services. In order to ensure rendering of one of the types of the mentioned services – institutional care services – for elderly population not only by the objective structure and scope, but also to ensure sufficient funding thereof, it is necessary to identify the priorities and principles of efficient rendering of the mentioned services. Researches carried out in the European Union show that most of the goals of effectiveness of institutional care services (further – “the ICS”) for the elderly are short-term, driven to technical efficiency, where efforts are taken to render maximal quantity of services (of the definite quality) for the minimal ICS costs. However, the increasing need for these services in a result of new changes in the structure and values of the society is not adequate to public resources and does not ensure satisfaction of the ICS need either.