Cambridgeshire County Council says it is down to "chronic underfunding" in recent years.
Councillors have raised concerns about the "crumbling" sector and agreed to back calls for the creation of a national care service.
However, some opposition councillors have accused the joint administration of trying to make a political point rather than work across parties to tackle the issues faced in adult social care.
Labour councillor Mike Black said the government had "caused a crisis in adult social care, with chronic underfunding to local authorities".
He said Cambridgeshire was facing a 20 per cent shortfall in care provision in the near future and said they should be looking to fill this with public sector provision.
He called for others to support the idea of a national care service that would be delivered locally through councils.
Conservative councillor Steve Count said there were benefits to private companies taking the lead, claiming non-profit organisations "tend to lack resilience and innovation" and suggested a national care system would create more bureaucracy.
The majority of councillors agreed to back calls for a national service.