Take care: A loose regulatory environment and an aging population will allow the industry to expand

The Nursing Care Facilities industry in California has expanded over the past five years due to an aging population and an improving economy. Since the elderly are more prone to injury and illness, and therefore require more assistance with daily activities, this larger share of senior adults has propelled demand for nursing care facilities. At the same time, the industry has benefited from a growing economy and the associated increase in per capita disposable income among seniors in California, a positive development given that more than a quarter of all industry revenue is generated from out-of-pocket payments. Despite policy changes at the federal level, the relatively lax regulatory environment at the state level has allowed the industry to expand...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • The industry has expanded due to an aging population and an improving economy
  • The industry has been challenged by the implementation of healthcare reform
  • The unprecedented aging of the population will continue unabated
  • Industry Report - Industry Investment Chapter

    Capital intensity in the Nursing Care Facilities industry is low. The industry requires relatively high amounts of labor input and only moderate levels of capital input. For every $1.00 spent on labor, only $0.06 is spent on capital equipment. This figure has remained relatively unchanged over the past five years. Total labor costs represent 38.3% of industry revenue. Significant levels of personal and nursing care are provided to patients. In addition, recent years have seen a rise in patient acuity, increasing the number of staff hours required per patient.Depreciation represents about 2.4% of total revenue in the industry. Capital expenditures can be volatile and are affected by the extent to which facilities are owned (rather than rented) and levels of profitability. Whi...purchase to read more.

    Additional Insights for the Nursing Care Facilities in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Nursing Care Facilities in California Industry are

  • Access to highly skilled workforce
  • Effective quality control
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Number of Adults Aged 65 and Older in California and Federal funding for Medicare and Medicaid in the Nursing Care Facilities in California industry impact industry performance..

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    What's in this report

    What is the Nursing Care Facilities in California Industry?

    This industry provides living quarters, inpatient nursing and rehabilitation services for people with a chronic illness or disability. The care is usually provided for an extended period to individuals who require help with day-to-day activities but do not need to be in a hospital.

    Industry Products
  • For-profit nursing homes
  • Nonprofit nursing homes
  • For-profit skilled nursing facilities
  • Nonprofit skilled nursing facilities
  • Hospice centers
  • Industry Activities
  • Operating convalescent homes or convalescent hospitals (except psychiatric)
  • Operating group homes with nursing care for the disabled
  • Operating homes with nursing care for the aged
  • Operating inpatient-care hospices
  • Operating nursing homes
  • Operating rest homes with nursing care
  • Operating retirement homes with nursing care
  • Operating skilled nursing facilities
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of Adults Aged 65 and Older in California
  • Federal funding for Medicare and Medicaid
  • Number of People with Private Health Insurance in California
  • Per Capita Disposable Income in California

  • Current Performance
  • Aging population
  • Healthcare reform and reimbursement rates
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Continued population aging
  • Healthcare reform changes
  • Industry building boom
  • Table: Nursing Care Facilities in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Nursing Care Facilities in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Health & Welfare Funds
  • Primary Care Doctors
  • Specialist Doctors
  • Hospitals
  • Consumers

  • Key Selling Industries
  • Brand Name Pharmaceutical Manufacturing
  • Commercial Leasing
  • Drug, Cosmetic & Toiletry Wholesaling
  • Employment & Recruiting Agencies
  • Generic Pharmaceutical Manufacturing
  • Grocery Wholesaling
  • Medical Instrument & Supply Manufacturing
  • Medical Supplies Wholesaling

  • Products & Services
  • For-profit nursing homes
  • For-profit skilled nursing facilities
  • Nonprofit nursing homes
  • Nonprofit skilled nursing facilities
  • Other
  • Hospice centers
  • Chart: Nursing Care Facilities in California Industry Products and Services Segmentation

  • Major Markets
  • Medi-Cal
  • Out-of-pocket
  • Medicare
  • Other
  • Private Insurance
  • Chart: Major Market Segmentation for the Nursing Care Facilities in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Rent and utilities
  • Other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Nursing Care Facilities in California

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Nursing Care Facilities in California Industry

  • Ensign Group Inc., Genesis HealthCare Corporation, HCR ManorCare, Kindred Healthcare LLC,
  • Table: Ensign Group Inc. - financial performance
  • Table: Genesis HealthCare Corporation - financial performance
  • Table: HCR ManorCare - financial performance
  • Table: Kindred Healthcare LLC - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Nursing Care Facilities in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Nursing Care Facilities in California Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of people with private health insurance in California (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Activities Of Daily Living (Adl)
  • Day-to-day tasks, such as preparing meals, shopping, managing money, taking medication and housekeeping.
  • Acuity
  • The measurement of the types of disorders, their severity and the intensity of the symptoms.
  • Home Healthcare
  • Medical and nursing services that are provided in a person's home by a licensed provider.
  • Hospice Care
  • Care and comfort provided to patients with a terminal illness and their families, which may include medical care, counseling and social services.
  • Long-Term Care
  • Care for a chronic condition, trauma, or illness that limits a person's ability to carry out basic self-care tasks, called activities of daily living (ADLs).
  • Medicare And Medicaid
  • Cost coverage programs. Medicare pays all or part of a stay following hospitalization of at least three days; Medicaid covers a stay of any length for individuals who meet income requirements.
  • Respite Care
  • Temporary relief for caregivers, ranging from several hours to several days, which may be provided in home or in a residential care setting, such as an assisted-living facility or nursing home.
  • What Our Customers Say

    Why buy this report?

    The Nursing Care Facilities in California Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Nursing Care Facilities in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Nursing Care Facilities in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Nursing Care Facilities in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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