Industry Analysis & Industry Trends
Although revenue dropped during the recession, an aging population will increase demand for industry services. However, recent legislation will likely influence consumers to use at-home nursing care to reduce costs. In addition, decreasing Medicaid and Medicare reimbursement rates and tougher pricing negotiation from private insurance companies may hamper profitability over the next five years. To stay afloat, operators will diversify services to attract customers and buoy profit margins... 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