Overview

Strong pulse: The industry is expected to expand with an increase of adults aged 65 and older

The Nursing Care Facilities industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$129bn
Annual Growth
12-17
1.4%
Annual Growth
17-22
Profit
Employment
1,747,950
Business
31,015

Industry Threats & Opportunities

  • Despite favorable demographic trends, insufficient government funding has hindered industry growth
  • Medicaid reimbursement rate for SNFs is expected to rise, benefiting industry operators
  • The growing number of older patients will stimulate demand for the industry
  • Industry Analysis & Industry Trends

    Over the five years to 2017, the need for services provided by nursing care facilities is expected to grow steadily along with revenue. During the five-year period, the continued aging of the population has spurred demand for industry services as the number of adults aged 65 and older is expected to increase. However, an unstable reimbursement model and changes implemented by healthcare reform have initiated a shift from nursing homes to at-home managed care and community care services. Since these services are completed at home, their growth represents a potential threat to industry operators. However, over the next five years favorable demographic trends are expected to outweigh potential impediments to growth, with revenue expected to increase.

    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 $0.05 is spent on capital equipment. This figure has remained relatively unchanged over the past five years. Total labor costs represent 42.0% of industry revenue. Significant levels of personal and nursing care are provided to patients. In addition, patient acuity has risen in recent years, increasing the number of staff hours required per patient.

    Depreciation represents 2.3% 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

    Additional Insights for the Nursing Care Facilities Industry

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

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

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    Industry Products

    What is the Nursing Care Facilities Industry?

    This industry provides living quarters, inpatient nursing and rehabilitation services for people with a chronic illness or disability. 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
    Government nursing homes and skilled nursing facilities
    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 elderly
    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Federal funding for Medicare and Medicaid
  • Number of adults aged 65 and older
  • Federal expenditure on disability benefits
  • Number of people with private health insurance
  • Per capita disposable income

  • Current Performance
  • Adjusting for age
  • Falling government reimbursement rates
  • Changing landscape and healthcare reform
  • Chart: Revenue Growth

  • Industry Outlook
  • Elderly population grows
  • Managed care and declining reimbursement rates
  • Reform alters industry landscape
  • Table: Nursing Care Facilities Industry Revenue Outlook

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

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

  • Demand Determinants
  • Catering to a diverse crowd
  • Patients still need to pay
  • Where patients go for services

  • Major Markets
  • Females aged 85 and older
  • Males aged 75 to 84
  • Individuals aged 64 and younger
  • Males aged 85 and older
  • Females aged 65 to 74
  • Females aged 75 to 84
  • Males aged 65 to 74
  • Chart: Major Market Segmentation for the Nursing Care Facilities Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRent and utilitiesOther expenses
  • Chart: Cost Structure Benchmarking – Sector vs Nursing Care Facilities

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Nursing Care Facilities Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Nursing Care Facilities Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Nursing Care Facilities Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of senior adults - 65 years and older (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    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
  • Comfort and care provided to patients with a terminal illness and their families, which may include medical care, counseling and social services.
  • Long-Term Care
  • Treatment 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.
  • Why buy this report?

    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:
    • 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 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, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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