Industry Analysis & Industry Trends
Due to the vital role of the Nursing Care Facilities industry, revenue expanded over the past five years despite broad economic stagnation. The aging of the American population as the baby boomer generation enters retirement age has spurred demand for industry services. Despite this favorable demographic trend, declining reimbursements from Medicare and Medicaid have hindered growth, as have federal policies aimed at shifting care for the elderly from nursing homes within the industry to at-home managed care and community care services. These trends are expected to continue over the next five years, and industry operators will likely revise their business models in response to regulatory changes and cost pressures... 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