Skilled Nursing Facility Market (By Facility Type: Hospital and Freestanding; By Ownership: Non-Profit, Profit, and Government; By Services Type: Intensive Rehabilitation Therapy, Low and Medium Rehabilitation, Medically Complex and Others) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2021 – 2030


According to Precedence Research, the global skilled nursing facility market was valued at US$ 315.52 billion in 2021 and is expected to reach over US$ 592.10 billion by 2030 with a registered CAGR of 7.2% from 2021 to 2030.

Skilled Nursing Facility Market Size 2020 to 2030

Growth Factors

The skilled nursing facilities are well-known for providing efficient and quality care services at affordable costs. Therefore, the demand for the skilled nursing facility services is growing significantly owing to the growing geriatric population and rapidly growing prevalence of chronic diseases across the globe. As per the data of National Institute on Aging, the global population of age 65 years and above constitutes around 8.5% of the global population. According to the United Nations, the global geriatric population is expected to reach around 2 billion by 2050. The old age people are susceptible of diseases are requires frequent monitoring and care services. The growing healthcare expenditure, rapidly aging population, rising burden of diseases, increasing disposable income, easy availability of skilled nursing services, and surging number of nuclear families are the major factors that propels the growth of the global skilled nursing facility market. The rising burden of disabilities owing to aging and various diseases is augmenting the demand for the nursing facility services. The availability of trained and experienced staffs, who provides 24*7 services, for short, medium, and long terms is a special advantage to the consumers or patients. The increased penetration of the skilled nursing facility services in the developed regions like Europe and North America has significantly contributed towards the growth of the market in the past few decades.

The old age population across the globe is suffering from various chronic diseases such as Alzheimer’s disease, Parkinson’s disease, cardiovascular diseases, cerebral palsy, diabetes, multiple, sclerosis, cancer, and dementia. Moreover, the favorable reimbursement policies have supported the growth of the skilled nursing facility market across the globe. The outbreak of the COVID-19 disease in 2020 and its rapid spread across the globe had a negative impact on the skilled nursing facility market. According to an article published in the Journal of Post-Acute and Long-Term Care Medicine (JAMDA), the Medicare spending for post-acute care was US$42 million per month in 2019, which dropped at US$19 million by October 2020. The skilled nursing facility constituted around 39% of the post-acute care in 2019 and dropped to 31% by 2020. Therefore, the pandemic negatively impacted the market and this impact is likely to sustain for long term as the patients are now increasingly opting for the rehabilitation services at home.

Scope of the Skilled Nursing Facility Market

Report Coverage Details
Market Size USD 592.1 Billion by 2030
Growth Rate CAGR of 7.2% from 2021 to 2030
Largest Market North America
Fastest Growing Market Asia Pacific
Base Year 2021
Forecast Period 2021 to 2030
Segments Covered Facility Type, Ownership Type, Region
Companies Mentioned Lincare, Inc., Golden Living, Emeritus Corporation, Genesis Healthcare, Sunrise Senior Living Inc., Gentiva Health Services, Life Care Centers of America, Brookdale Senior Living, Extendicare, Inc.

 

Facility Type Insights

The freestanding segment dominated the global skilled nursing facility market in 2020. Freestanding is the most affordable facility type that provides 24/7 services to the patients. The high Medicare payments is a major factor that boosts the growth of this segment. As per the MedPac, the average margin for Medicare for the freestanding skilled nursing facility was over 11%. As per the California Hospital Association, CMS, an increase of 2.4% in the Medicare payments to the skilled nursing facilities was implemented in 2020. Therefore, the growing Medicare expenses is expected to further boost the growth of the freestanding segment in the forthcoming years.

On the other hand, the hospital segment is expected to witness a considerable growth rate during the forecast period. The hospital-based skilled nursing facilities provides better and specialized nursing services to a patient due to the joint operations of the hospitals and its skilled nursing facilities. The adoption of the better infrastructure in hospitals and better communication and co-ordinations helps the hospital skilled nursing facilities to enhance their services based on the patients’ requirements.

Ownership Insights

The profit segment dominated the global skilled nursing facility market in 2020. The for-profit skilled nursing facilities are wholly driven by generating maximum revenues and profit for the owners and the investors by providing customer centric and quality services. The urge to generate more profits among the for-profit skilled nursing facilities motivates them to put extra efforts in providing quality care to the patients that boosts the demand for the for-profit skilled nursing facility.

On the other hand, the non-profit is estimated to be the fastest-growing segment during the forecast period. This is attributed to the reinvestment of the generated revenues to improve services, increase staffing, and providing services at much lower or minimal costs to the geriatric people.

Region Insights

North America was the leading skilled nursing facility market in 2020. This can be attributed to the increased prevalence of chronic diseases, growing geriatric population, increased adoption of skilled nursing facilities, and increased healthcare expenditure. According to the Population Reference Bureau, the number of people aged 65 years and above is expected to reach at 95 million in US by 2060. In 2018 this number was 52 million. Moreover, it is estimated that around 60% of the USA population is suffering from one or more chronic diseases. Furthermore, the favorable reimbursement policies and implementation of necessary updates in the policies is fueling the growth of the market. For instance, in 2019, the Centers for Medicare and Medicaid Services (CMS) introduced a patient driven payment model that categorizes the skilled nursing facility inpatient stays.

Asia Pacific is estimated to be the most opportunistic market during the forecast period. This is attributable to the rapidly growing geriatric population in the region coupled with the rising prevalence of chronic diseases. According to the United Nations, about 80% of the old age people are expected to live in low and middle income countries by 2050. Moreover, the rapid urbanization, rapid industrialization, unhealthy food habits, and rising pollution levels are contributing towards increasing the number of patients. The growing penetration of the skilled nursing facilities in this region is expected to have a significant impact on the market growth in the forthcoming years. Moreover, the growing number of nuclear families, improving access to healthcare services, and rising healthcare spending is expected to augment the growth of the Asia Pacific skilled nursing facility market.

Key Market Developments

  • In December 2020, Ensign Group completed the acquisition of Hays Nursing and Rehabilitation Center in Texas.
  • In February 2019, Genesis Healthcare and Next Health Capital entered into a real estate partnership involving 15 skilled nursing facilities. This strategy aimed at offering services to the maximum number of patients.
  • In February 2021, Omega Healthcare entered into a deal of US$150 million with Healthpeak Properties and acquired Brookdale Senior Living in US.

The skilled nursing facility market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing.

Some of the prominent players in the global skilled nursing facility market include:

  • Lincare, Inc.
  • Golden Living
  • Emeritus Corporation
  • Genesis Healthcare
  • Sunrise Senior Living Inc.
  • Gentiva Health Services
  • Life Care Centers of America
  • Brookdale Senior Living
  • Extendicare, Inc.

Segments Covered in the Report

By Facility Type

  • Freestanding
  • Hospital

By Ownership Type

  • Non-Profit
  • Profit
  • Government

By Services Type

  • Intensive Rehabilitation Therapy
  • Low and Medium Rehabilitation
  • Medically Complex
  • Others

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • North Africa
    • South Africa
    • Rest of Middle East & Africa

Frequently Asked Questions

What is the current size of skilled nursing facility market?
According to Precedence Research, the global skilled nursing facility market was reached at US$ 294.6 billion in 2020 and is projected to surpass US$ 592.10 billion by 2030.
The global skilled nursing facility market to grow at a registered CAGR of 7.2% from 2021 to 2030.
The improving access to healthcare facilities, growing geriatric population, rising prevalence of chronic diseases among the global population, and rising healthcare spending of the consumers are the major factors that boosts the growth of the global skilled nursing facility market during the forecast period.
The leading players operating in the global skilled nursing facility market are Lincare, Inc., Golden Living, Emeritus Corporation, Genesis Healthcare, Sunrise Senior Living Inc., Genesis HealthCare, Gentiva Health Services, Life Care Centers of America, Brookdale Senior Living, Extendicare, Inc..
North America will lead the global skilled nursing facility market during the forecast period.
  • Report Code:1504
  • Category:Healthcare
  • No. of Pages:150+
  • Format:PDF/PPT/Excel
  • Status:Published

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