According to Precedence Research, the global skilled nursing facility market was valued at US$ 310 billion in 2022 and is expected to reach over US$ 697.66 billion by 2032 with a registered CAGR of 8.50% from 2023 to 2032.
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The U.S. skilled nursing facility market reached US$ 68.82 billion in 2022 and is projected to expand around US$ 156.31 billion by 2032 with a CAGR of 8.60% from 2023 to 2032.
North America was the leading skilled nursing facility market in 2022. 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.
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.
| Report Coverage | Details |
| Market Size | USD 697.66 Billion by 2032 |
| Growth Rate | CAGR of 7.2% from 2023 to 2032 |
| Largest Market | North America |
| Fastest Growing Market | Asia Pacific |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| 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. |
The freestanding segment dominated the global skilled nursing facility market in 2022. 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.
The profit segment dominated the global skilled nursing facility market in 2022. 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.
Key Market Developments
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.
Segments Covered in the Report
By Facility Type
By Ownership Type
By Services Type
By Geography
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