CLEVELAND, October 29, 2021 / PRNewswire / – Revenues for skilled nursing facilities are expected to grow 3.0% annually in nominal dollars through 2025, according to Qualified nursing facilities: United States, a report recently published by Freedonia Focus Reports. Skilled nursing facility operators are expected to benefit from the 3.2% annual growth expected for the population aged 80 and over through 2025 – a key demographic for skilled nursing facilities – and the continued availability of Medicaid and Medicare funds. In addition, operators are expected to benefit from the ongoing gains expected in per capita spending due to the following factors:
- a growing share of skilled nursing facilities operated by for-profit entities, which typically charge higher prices for their services
- a move towards more individualized care rather than standardized task-based plans
- increasing availability and use of higher-value services, such as private rooms, as well as physiotherapy, occupational therapy and speech-language pathology so that individuals can maintain an active lifestyle
Faster gains will be limited by the provision of health care and child care services in different formats and types of facilities (eg, assisted living facilities, continuing care retirement communities, and home health care). Government-led efforts to match older and disabled people with appropriate levels and settings of care in order to limit expenses and improve quality of life (for example, by giving them the opportunity to live at home ) will represent a particularly important constraint.
Skilled nursing facilities experienced marginal revenue growth in 2020, but are expected to register gains of 3.8% in 2021. While many older people died in nursing facilities in 2020 and 2021 due to the COVID-19 pandemic and many were reluctant to enter nursing facilities, residents did not leave the facilities during the pandemic for fear of spreading the virus to family members and vice versa. In addition, many elderly people continued to get sick and injured, and needed skilled nursing care and therefore had to enter skilled nursing facilities. In the future, the high vaccination rates of the elderly are expected to benefit operators, as the risk of contracting COVID-19 in skilled nursing facilities is much lower as of October 2021, and older people and their families can feel more secure in the face of the conditions in these facilities.
This and other key information is presented in Qualified nursing facilities: United States. This report forecasts the earnings of U.S. skilled nursing facilities in nominal U.S. dollars through 2021 and 2025. Total revenues are segmented by type of operator in terms of:
Total revenues are also segmented by funding source as follows:
- Health Insurance
- private health insurance
- from your pocket
- other sources such as charitable contributions and private grants, long term care insurance and the US Department of Veterans Affairs
To illustrate historical trends, total revenues and different segments are provided in annual series from 2010 to 2020. In addition, net profit margin and number of companies, establishments and employees are provided for the period 2010 -2019.
This ratio represents the revenues of qualified nursing care facilities (ie, establishments primarily engaged in operating qualified nursing care facilities). Qualified nursing care provided by assisted living facilities, continuing care retirement communities, hospitals and home care agencies is excluded from the scope of this report, unless these organizations maintain primarily independent facilities. focused on the operation of skilled nursing facilities. Also excluded from the scope of this report are services provided by caregivers who are directly employed by the patient or family and care provided by family members.
This report includes the results of an exclusive online national survey of U.S. consumers (ages 18 and older). This national survey by Freedonia Focus Reports includes a sample of approximately 2,000 people, selected for the quality of responses and representative of the U.S. population on demographic measures of age, sex, geographic region, race / ethnicity, household income and presence / absence of children in the household.
More information on the report is available at:
About Freedonia Focus Reports
Each month, The Freedonia Group – a division of MarketResearch.com – publishes over 20 new and updated Freedonia Focus reports providing fresh and unbiased analysis across a wide variety of markets and industries. Published in 20 to 30 pages, the Focus report covers raw materials, finished manufactured goods and related services such as freight and construction. Additional health care and biotechnology reports can be purchased from Freedonia Focus Reports or MarketResearch.com.
The analysis aims to guide the busy reader through relevant topics in rapid succession, including:
- total historical market size and industrial production
- segmentation by products and markets
- identification of market drivers, constraints and key indicators
- segment by segment outlook in the five-year forecast
- a supply base survey
- suggested resources for further study
SOURCE The Freedonia Group