The U.S. skilled nursing facility market size was exhibited at USD 180.95 billion in 2023 and is projected to hit around USD 253.77 billion by 2033, growing at a CAGR of 3.44% during the forecast period 2024 to 2033.
| Report Coverage | Details |
| Market Size in 2024 | USD 187.17 Billion |
| Market Size by 2033 | USD 253.77 Billion |
| Growth Rate From 2024 to 2033 | CAGR of 3.44% |
| Base Year | 2023 |
| Forecast Period | 2024-2033 |
| Segments Covered | Type of Facility, Ownership |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Regional Scope | The U.S. |
| Key Companies Profiled | Genesis Healthcare; Brookdale Senior Living Solutions; The Ensign Group; Inc; Extendicare; Sunrise Senior Living; LLC; Life Care Services; Golden Living Centres; Life Care Centres of America Corporate; Peninsula behavioral health; Sava Senior Care Administrative Services LLC; Lincare, Inc. |
Skilled nursing facilities (SNFs) provide high-quality care services at a much lower cost as compared to hospitals, generating tremendous demand among investors. The increasing geriatric population and high prevalence of multiple chronic diseases in the U.S. are boosting the market growth. According to the United States Census Bureau, there are currently about 54 million adults aged 65 and up in the U.S., accounting for around 16.5 % of the population. The number of elderly people in the country is significant and is expected to continue to rise until 2050 when the total number of adults aged 65 and more is expected to reach 85.7 million. This equates to roughly 20% of the total population of the United States.
The elderly population is suffering from chronic diseases such as cancer, heart problems, diabetes, cerebral palsy, Parkinson's disease, multiple sclerosis, dementia, Alzheimer’s disease, and mental stress. According to the American Heart Association, about 82.6 million adults in the U.S. suffer from one or more types of cardiovascular disease making it a leading cause of death for both men and women. Owing to the growing elder population, the prevalence of rising chronic diseases in the U.S. has significantly increased the demand for skilled nursing facilities.
Skilled nursing facilities are residential health facilities that provide nursing, rehabilitation, and related services. In SNFs, Medicare covers short-term skilled nursing and rehabilitation services for beneficiaries after staying in an acute care hospital. In 2019, approximately 15,000 SNFs provided 1.5 million fee-for-service (FFS) beneficiaries with approximately 2 million Medicare-eligible stays which are 4% of Medicare FFS beneficiaries.
Most SNFs are also certified as nursing homes providing long-term care services not covered by Medicare. Therefore, the availability of reimbursement and favorable investment returns are boosting the growth of the market. For beneficiaries who qualify for a covered stay, Medicare pays 100% of the payment for the first 20 days of the spell of disease. The beneficiary is responsible for the self-pay from the 21st day through the day of 100 of the covered stay. For the fiscal year 2021, the co-payment was USD 185.50 per day.
Based on type, the market is bifurcated into freestanding and hospital. The freestanding segment accounted for the largest market share of 90.20% in 2023 and is expected to register the fastest CAGR of 3.57% during the forecast period. Freestanding is the most affordable type of facility that provides patients with 24-hour service. High Medicare payments are a key driver of growth in this segment. According to MedPac, the average Medicare margin for self-supporting and skilled nursing facilities was over 11%. According to the California Hospital Association, in 2023, Medicare payments to skilled nursing facilities will increase by 5%. As a result, increased spending on Medicare is expected to drive market growth for freestanding facilities.
The hospital SNFs segment, on the other hand, is expected to grow significantly during the forecast period. Hospital-based nursing facilities provide better professional nursing services through the joint operation of hospitals and their skilled nursing facilities. The adoption of better infrastructure and superior communication and coordination in hospitals helps nursing facilities improve services based on patient needs.
Hospital SNFs have experienced an increase in medically complex hospitalizations, however, the daily costs of hospital SNFs have increased due to the increase in qualified staff and shorter stays. By moving the patient to the SNF bed, hospitals can shorten the length of stay (LOS) of the inpatient, thereby freeing the inpatient's bed for additional inpatient treatment.
The SNF market has been bifurcated into three categories based on ownership, for-profit facilities, non-profit facilities, and government facilities. For-Profit segment accounted for the largest market share of 72.0% in 2023 and is expected to register the fastest CAGR of 3.58% during the forecast period. By focusing on maximizing the return on investment capital, for-profit organizations can provide incentives to operate at a lower cost than non-profits.
Non-profit SNFs, are estimated to be the fastest-growing segment during the forecast period. This is due to the improving service, increasing staff, and reinvesting the revenue generated to serve older people at much lower or minimal costs. Non-profit nursing homes accelerate market growth by offering benefits such as fewer incidence of bedsores, lower ulcer prevalence, fewer hospitalization rates, lower government-led shortages, and higher staffing ratios.
Government SNFs had a smaller market share than for-profit and non-profit facilities during the forecast period. This can be due to poor quality of care, high health deficit, and low availability of compensation. High staff ratings compared to for-profit housing drive the growth of government nursing facilities.
This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the U.S. skilled nursing facility market
Type of Facility
Ownership
Chapter 1 U.S. Skilled Nursing Facility Market: Methodology and Scope
1.1 Market Segmentation & Scope
1.1.1 Estimates and Forecast Timeline
1.2 Research Methodology
1.3 Information Procurement
1.3.1 Purchased database:
1.3.2 Internal Database
1.3.3 Secondary sources
1.3.4 Primary research
1.4 Information or Data Analysis
1.5 Market Formulation & Validation
1.6 Model Details
1.6.1 Commodity flow analysis
1.7 List of Secondary Sources
1.8 List of Abbreviations
1.9 Objectives
1.9.1 Objective - 1
1.9.2 Objective - 2
1.9.3 Objective - 3
Chapter 2 U.S. Skilled Nursing Facility Market: Executive Summary
2.1 Market Outlook
2.2 Segment Outlook
2.2.1 Type
2.2.2 Ownership
2.3 Competitive Insights
Chapter 3 U.S. Skilled Nursing Facility Market: Variables, Trends & Scope
3.1 Market Lineage Outlook
3.1.1 Parent market outlook
3.1.2 Related/ancillary market outlook
3.2 Market Dynamics
3.2.1 Market driver analysis
3.2.1.1 Rising geriatric population
3.2.1.2 Increasing burden of chronic illness
3.2.2 Market restraint analysis
3.2.2.1 High cost of services
3.2.2.2 Shortage of workforce
3.3 Penetration & Growth Prospect Mapping
3.4 Business Environment Analysis Tools
3.4.1 PESTEL Analysis
3.4.1.1 Political landscape
3.4.1.2 Economic and social landscape
3.4.1.3 Technology landscape
3.4.2 Porter’s five forces analysis
3.4.2.1 Competitive rivalry
3.4.2.2 Threat of new entrants
3.4.2.3 Bargaining power of buyers
3.4.2.4 Bargaining power of suppliers
3.4.2.5 Threat of substitutes
3.5 Regulatory Framework & Reimbursement: U.S. Skilled Nursing Facilities Market, 2021
3.5.1 Regulatory Framework
3.5.2 Reimbursement Scenario
3.6 Qualitative Analysis: Impact of COVID-19 on U.S. Skilled Nursing Facilities
Chapter 4 U.S. Skilled Nursing Facilities Market: Type Analysis
4.1 U.S. Skilled Nursing Facilities Market Share Analysis, (USD Billion)
4.2 Segment Dashboard
4.3 Market Size & Forecasts and Trend Analysis, 2021 to 2033 for the Skilled Nursing Facility Type
4.3.1 Freestanding
4.3.1.1 Freestanding market, 2021 - 2033
4.3.2 Hospital
4.3.2.1 Hospital market, 2021 - 2033
Chapter 5 U.S. Skilled Nursing Facilities Market: Ownership Analysis
5.1 U.S. Skilled Nursing Facilities by Type of Facility Market Share Analysis, (USD Billion)
5.2 Segment Dashboard
5.3 Market Size & Forecasts and Trend Analysis, 2021 to 2033 for the Ownership
5.3.1 For-Profit Facilities
5.3.1.1 For-profit facilities market, 2021 - 2033
5.3.2 Non-Profit Facilities
5.3.2.1 Non-profit facilities market, 2021 - 2033
5.3.3 Government Facilities
5.3.3.1 Government facilities market, 2021 - 2033
Chapter 6 Competitive Analysis
6.1 Recent Developments & Impact Analysis, by Key Market Participants
6.2 Competition Categorization (Key innovators, market leaders, emerging players)
6.3 Vendor Landscape
6.3.1 Mergers & Acquisitions
6.3.2 Partnerships
6.4 Company Market Position Analysis
6.5 Company Profiles
6.5.1 Genesis HealthCare
6.5.1.1 Company overview
6.5.1.2 Financial performance
6.5.1.3 Service benchmarking
6.5.1.4 Strategic initiatives
6.5.2 Brookdale Senior Living Solutions
6.5.2.1 Company overview
6.5.2.2 Financial performance
6.5.2.3 Service benchmarking
6.5.2.4 Strategic initiatives
6.5.3 The Ensign Group, Inc.
6.5.3.1 Company overview
6.5.3.2 Financial performance
6.5.3.3 Service benchmarking
6.5.3.4 Strategic initiatives
6.5.4 National HealthCare Corporation
6.5.4.1 Company overview
6.5.4.2 Financial performance
6.5.4.3 Service benchmarking
6.5.4.4 Strategic initiatives
6.5.5 Sunrise Senior Living, LLC
6.5.5.1 Company overview
6.5.5.2 Financial performance
6.5.5.3 Service benchmarking
6.5.5.4 Strategic initiatives
6.5.6 Life Care Services
6.5.6.1 Company overview
6.5.6.2 Financial performance
6.5.6.3 Service benchmarking
6.5.7 HCR ManorCare
6.5.7.1 Company overview
6.5.7.2 Financial performance
6.5.7.3 Service benchmarking
6.5.8 Golden LivingCenters
6.5.8.1 Company overview
6.5.8.2 Financial performance
6.5.8.3 Service benchmarking
6.5.8.4 Strategic initiatives
6.5.9 Life Care Centers of America
6.5.9.1 Company overview
6.5.9.2 Financial performance
6.5.9.3 Service benchmarking
6.5.10 SavaSeniorCare Administrative Services LLC
6.5.10.1 Company overview
6.5.10.2 Financial performance
6.5.10.3 Service benchmarking
6.5.11 Lincare, Inc
6.5.11.1 Company overview
6.5.11.2 Financial performance
6.5.11.3 Service benchmarking
6.5.11.4 Strategic initiatives
Cross-segment Market Size and Analysis for Mentioned Segments
Additional Company Profiles
(Upto 5 With No Cost)
Additional Countries (Apart
From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers