U.S. Skilled Nursing Facility Market Size, Share & Trends Analysis Report By Ownership (For-profit, Non-profit, Government), By Type (Freestanding, Hospital),- Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2023-2032

The U.S. Skilled Nursing Facility market size was exhibited at USD 182.07 billion in 2022 and is projected to hit around USD 252.64 billion by 2032, growing at a CAGR of 3.33% during the forecast period 2023 to 2032.

Key Pointers:

• The freestanding segment dominated the market in 2022 due to its lower cost compared to hospital-based facilities. The segment is expected to remain dominant and is expected to record a significant growth rate
• Skilled nursing facilities will be compensated by Medicare Apartments A and B. This makes it more sustainable and a factor in market growth
• Based on ownership, for-profit facilities dominated the market in 2022 due to increased acquisition and delivery of high-quality care while ensuring financial viability
• During the pandemic, the long-term care centers received billions of dollars from the government, according to the Center for Medicare Advocacy report released in March 2022
• Approximately 10,293 long-term care facilities received a total of approximately $ 6.9 billion in loans under the Paycheck Protection Program, as of March 2022. The program was created as part of the CARES Act and extended by the Consolidated Appropriations Act of 2022, to provide financial support for businesses to retain employees during a pandemic
• In June 2022, Amedisys announced the acquisition of Contessa Health, a leading hospital and skilled care facility company. Through this acquisition, the company wants to expand its home care capabilities by adding more advanced acute care home hospitals and skilled home care facilities with advanced analytics platforms and expanding network management

U.S. Skilled Nursing Facility Market Report Scope

Skilled nursing facilities (SNFs) provide high-quality care services at a much lower cost as compared to hospitals, generating tremendous demand among investors. The increasing geriatric population and high prevalence of multiple chronic diseases in the U.S. are boosting the market growth. According to the United States Census Bureau, there are currently about 54 million adults aged 65 and up in the U.S., accounting for around 16.9% of the population. The number of elderly people in the country is significant and is expected to continue to rise until 2050 when the total number of adults aged 65 and more is expected to reach 85.8 million. This equates to roughly 20% of the total population of the United States.

The growing aging population with increasing care needs and rising prevalence of chronic diseases in the country will propel the need for skilled nursing facilities(SNFs). In addition, lower costs of SNF as compared to hospitals will drive the market growth. SNFs cover numerous aspects such as therapy, mental health services, special dietary needs, hygiene items, recreational activities, and housekeeping.

The coronavirus pandemic has adversely affected the entire market for skilled nursing facilities. These medical facilities were major infection hotspots that limited operations in skilled nursing facilities. In addition, the elderly population was considered the most vulnerable group to infectious diseases and restricted their use of these services. However, the adoption of digital and wireless technology and video conferencing during a pandemic has supported the growth of the market.

Residents of skilled care facilities may be at increased risk of becoming infected with COVID-19. According to the CDC, during the first few months of the pandemic, about 2.1 million people live in long-term care facilities or nursing homes, accounting for less than 1% of the US population. These facilities were not allowed to accept new residents, had no new source of income for the additional costs associated with the virus, and adversely affected the service department of skilled care facilities.

Type of Facility Insights

Based on type, the market is bifurcated into freestanding and hospital. Freestanding is the most affordable type of facility that provides patients with 24-hour service. High Medicare payments are a key driver of growth in this segment. According to MedPac, the average Medicare margin for self-supporting and skilled nursing facilities was over 11%. According to the California Hospital Association, in 2022, Medicare payments to skilled nursing facilities will increase by 5%. As a result, increased spending on Medicare is expected to drive market growth for freestanding facilities.

The hospital SNFs segment, on the other hand, is expected to grow significantly during the forecast period. Hospital-based nursing facilities provide better professional nursing services through the joint operation of hospitals and their skilled nursing facilities. The adoption of better infrastructure and superior communication and coordination in hospitals helps nursing facilities improve services based on patient needs.

Hospital SNFs have experienced an increase in medically complex hospitalizations, however, the daily costs of hospital SNFs have increased due to the increase in qualified staff and shorter stays. By moving the patient to the SNF bed, hospitals can shorten the length of stay (LOS) of the inpatient, thereby freeing the inpatient's bed for additional inpatient treatment.

Ownership Insights

The SNF market has been bifurcated into three categories based on ownership, for-profit facilities, non-profit facilities, and government facilities. The for-profit segment dominated the market in 2022. By focusing on maximizing the return on investment capital, for-profit organizations can provide incentives to operate at a lower cost than non-profits.

Non-profit SNFs, are estimated to be the fastest-growing segment during the forecast period. This is due to the improving service, increasing staff, and reinvesting the revenue generated to serve older people at much lower or minimal costs. Non-profit nursing homes accelerate market growth by offering benefits such as fewer incidence of bedsores, lower ulcer prevalence, fewer hospitalization rates, lower government-led shortages, and higher staffing ratios.

Government SNFs had a smaller market share than for-profit and non-profit facilities during the forecast period. This can be due to poor quality of care, high health deficit, and low availability of compensation. High staff ratings compared to for-profit housing drive the growth of government nursing facilities.

Some of the prominent players in the U.S. Skilled Nursing Facility Market include:

• Genesis Healthcare
• Brookdale Senior Living Solutions
• Lincare, Inc.
• The Ensign Group, Inc
• Extendicare
• Sunrise Senior Living, LLC
• Life Care Services
• Golden Living Centers
• LifeCare Centers of America Corporate
• Peninsula behavioral health
• Sava Senior Care Administrative Services LLC 

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the U.S. Skilled Nursing Facility market.

By Type of Facility

• Freestanding
• Hospitals

By Ownership 

• For-Profit
• Non-Profit
• Government