Industry Analysis & Industry Trends
Due to the necessary nature of services provided by nursing care facilities, the industry was able to grow despite broad economic stagnation. Additionally, the continued aging of the population has spurred demand for industry services. Since the elderly are more prone to injury and illness, and therefore require more assistance with daily activities, the larger share of senior adults has propelled demand for nursing care facilities. Despite favorable demographic trends, unsatisfactory government funding has hindered industry growth. Over the five years to 2021, the industry is expected to continue expanding. Continued aging of the population, which is expected to accelerate over the five-year period, will drive industry growth... purchase to read more
Industry Report - Starting a New Business Chapter
The Nursing Care Facilities industry has moderate barriers to entry, particularly in states with no certificate of need (CON) regulation. A CON is a legal document required in many states before proposed acquisitions, expansions, or creations of facilities are allowed. CONs are necessary for the construction of a medical facility in 36 states and are issued by state healthcare agencies. Operators must also adhere to other federal, state and local government laws and regulations, which can be extensive, when establishing and operating facilities. For instance, facilities must be accredited and licensed. Many states have imposed moratoria on new nursing homes beds.
Aside from regulation, barriers to entry are low... purchase to read more